Standardization of timeline for listing of securities issued on a private placement basis
Summary
The circular standardizes the timeline for listing securities issued on a private placement basis under four specific SEBI regulations. It mandates that depositories activate ISINs only after stock exchanges grant listing approval and outlines procedures for re-issuances within existing ISINs. Issuers face penalties for delays, including paying penal interest and restrictions on utilizing proceeds from subsequent issuances.
Text
stipulate the following timelines: Closure of issue T day; Receipt of funds To be completed by T+2 trading day; Allotment of securities trading day; Issuer to make listing application to Stock Exchange(s) To be completed by T+4 trading day; Listing permission from Stock Exchange(s)
Depositories shall activate the ISINs of debt securities issued on private placement basis only after the Stock Exchange(s) have accorded approval for listing of such securities.
Depositories are advised to allot such new debt securities under a new temporary ISIN which shall be kept frozen... Upon receipt of listing approval... credited in the pre-existing ISIN
Stock Exchange(s) are advised to inform the listing approval details to the Depositories whenever listing permission is given
In case of delay in listing... beyond the timelines specified in para 2 above, the issuer shall; pay penal interest of 1% p.a. over the coupon rate... be permitted to utilise the issue proceeds of its subsequent two privately placed issuances... only after receiving final listing approval
Clause 4(a) (ii) of the SEBI Circular No. SEBI/HO/MIRSD/DOS3/CIR/P/2019/68 dated May 27, 2019 stands deleted.
The circular shall come into force with effect from December 01, 2020.
This circular is being issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Standardization of timeline for listing of securities issued on a private placement basis. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.