Thursday, April 16, 2015

SEBI for Re-Issuance of Securities In Corporate Bond Market

Securities and Exchange Board of India (SEBI) has notified a new regulation to allow re-issuance
of existing debt securities by a corporate issuer within a specified time period. An issuer can carry
out consolidation and re-issuance of its debt securities in case the issue is made through private placement, obtain fresh credit rating for each re-issuance from at least one registered rating agency
and appropriate disclosures are made. The issuer would have to pay the redemption proceeds to investors along with interest due to them within 15 days from the last day within which such right can be exercised. In case of delay, the issuer would have to pay 15% annually.

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