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Sebi comes out with disclosure format for listed debt securities

PTI   

Sebi comes out with disclosure format for listed debt securities
Business1 min read
New Delhi, Jan 17 () Markets regulator Sebi on Friday came out with a disclosure format for listed companies which have issued debt securities, under which they need to disclose on half-yearly basis about deviation in the use of proceeds from the objects stated in the offer documents.

The first such submission should be made by the listed entities for the half-year ended March 31, 2020, the Securities and Exchange Board of India (Sebi) said in a circular.

"Listed entities which have issued non-convertible debt securities or non-convertible redeemable preference shares (NCRPs), shall submit the statement indicating deviation or variation, if any, in the (prescribed) format...on half-yearly basis," it added.

The format for the statement indicating deviation or variation will be applicable for funds raised by entities through issuance of non-convertible debt securities or non-convertible redeemable preference shares, which are listed.

With regard to frequency of disclosure, Sebi said the statement needs to be submitted to the stock exchange on half-yearly basis within 45 days of the end of the half-year until such funds are fully utilised or the purpose for which these proceeds were raised has been achieved.

With respect to the role of audit committee, the regulator said that the statement should be placed before the committee of the listed entity for review on half-yearly basis and after such review, the comments of the committee along with the report need to be submitted to the exchange, as part of the format.

In cases where the listed entity is not required to have an audit committee, the word 'audit committee' needs to be replaced with board of directors, it added. SP RVK

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