Format for Statement indicating Deviation or Variation in the use of proceeds of issue of listed non-convertible debt securities or listed NCRPs
Summary
SEBI mandates listed entities issuing non-convertible debt securities or NCRPs to submit a half-yearly statement indicating any deviation in the use of proceeds. The format requires disclosure of original versus modified objects, fund allocation, and utilization details, along with audit committee comments. This circular prescribes the specific structure for such disclosures under SEBI LODR Regulations.
Text
A listed entity is required to submit to the stock exchange, a statement indicating deviation or variation, if any, in the use of proceeds of issue of non-convertible debt securities or non-convertible redeemable preference shares (NCRPs), from the objects stated in the offer document/Information memorandum.
Listed entities which have issued non-convertible debt securities or NCRPs, shall submit the statement indicating deviation or variation, if any, in the format placed at Annexure-A of this circular on half yearly basis.
The format for the statement indicating deviation or variation shall be applicable for funds raised by entities through issuance of non-convertible debt securities or NCRPs, which are listed.
The statement indicating deviation or variation shall be submitted to the Stock Exchange(s) on half yearly basis within 45 days of end of the half year until such funds are fully utilised or the purpose for which these proceeds were raised has been achieved.
The statement indicating deviation report shall be placed before the Audit Committee of the listed entity for review on half yearly basis and after such review, the comments of Audit Committee along with the report shall be disclosed/submitted to the stock exchange, as part of the format.
In cases where the listed entity is not required to have an audit committee under the provisions of SEBI LODR Regulations or Companies Act, 2013, the word ‘Audit Committee’ shall be replaced with ‘Board of Directors’.
The first such submission shall be made by the listed entities for the half year ended March 31, 2020; subsequent submissions shall be made on half yearly basis as explained above.
The Stock Exchanges are advised to bring the provisions of this circular to the notice of all the listed entities and to disseminate the same on their websites.
The circular is issued in exercise of the powers conferred under sections 11 and 11A of the Securities and Exchange Board of India Act, 1992 read with Regulations 52(7) and 101 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Source: SecMarx — Format for Statement indicating Deviation or Variation in the use of proceeds of issue of listed non-convertible debt securities or listed NCRPs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.