Contribution by eligible Issuers of debt securities to the Settlement Guarantee Fund of the Limited Purpose Clearing Corporation for repo transactions in debt securities
Summary
This circular mandates eligible issuers of debt securities to contribute 0.5 basis points of the issuance value per annum to the Settlement Guarantee Fund of the Limited Purpose Clearing Corporation (LPCC). The collected amount must be placed in an escrow account by Stock Exchanges prior to allotment and transferred to the LPCC within one working day. These provisions apply to offer documents filed on or after May 1, 2023, under the authority of Section 11(1) of the SEBI Act.
Text
An amount of 0.5 basis points of the issuance value of debt securities per annum based on the maturity of debt securities shall be collected by the Stock Exchanges and placed in an escrow account prior to the allotment of the debt securities.
Stock Exchanges shall transfer the amounts so collected to the bank account of the LPCC within one working day of the receipt of the amount and inform the details of the same to the LPCC.
The details of the amounts so collected shall also be disclosed by the Stock Exchanges on their websites.
The above mentioned charges shall be collected on the basis of Actual/ Actual.
The provisions of this circular shall come into force for the offer documents filed on or after May 01, 2023, for private placement/ public issues of debt securities by such eligible issuers as specified by the LPCC.
This circular is issued in exercise of powers under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets read with Regulation 55(1) of SEBI (Issue and Listing of Non-convertible securities) Regulations, 2021.
Source: SecMarx — Contribution by eligible Issuers of debt securities to the Settlement Guarantee Fund of the Limited Purpose Clearing Corporation for repo transactions in debt securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.