Amendments to the Listing Agreement for Debentures
Summary
This circular amends the Model Listing Agreement for Debentures to mandate limited reviews of unaudited financial results instead of full audits. It requires issuers of privately placed debentures to submit half-yearly results and those from public/rights issues to submit quarterly results, both subject to limited review. The revised provisions apply to all filings made on or after April 1, 2007.
Text
Clause 3.3 applicable for debentures issued on private placement basis shall be amended to provide for submission of unaudited half-yearly results subject to a limited review (instead of half-yearly audited results).
Clause 2.14.A.(1) applicable for debentures issued on public/ rights issue basis shall be amended to provide for submission of unaudited quarterly results subject to a limited review.
The issuer agrees to furnish unaudited financial results on a half-yearly basis... within one month from the end of the half-year to the stock exchange... subjected to limited review by the statutory auditors... and a copy of the limited review report... furnished to the stock exchange within two months from the end of the half-year.
The issuer agrees to furnish unaudited financial results on a quarterly basis... within one month from the end of quarter... to the Stock Exchange. The same shall be subjected to limited review... and a copy of the limited review report... furnished to the stock exchange within two months from the end of the quarter.
The revised Clauses of the Listing Agreement for Debentures shall come into force for all filings made to stock exchanges on or after April 1, 2007.
All Stock Exchanges are advised to do the following before the date of this circular coming into force, i.e., by April 1, 2007: Give effect to the abovementioned policies and appropriately amend the Listing Agreement for debentures in line with the amendments specified in Annexure I.
All Stock Exchanges are further advised to do the following: Monitor compliance with the submission of financial results, based on quarterly/ half-yearly returns submitted by companies.
This circular is issued in exercise of powers conferred by sub-section (1) of Section 11, read with sub-section (2) of Section 11A, of the Securities and Exchange Board of India Act, 1992... The provisions of SEBI circular No. SEBI/CFD/DIL/CIR-39/2004/11/01 dated November 1, 2004... to the extent inconsistent with the provisions of the instant circular shall stand superseded with effect from April 1, 2007.
Source: SecMarx — Amendments to the Listing Agreement for Debentures. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.