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SEBI notifies disclosures norms for listed debt securities

SEBI said that the minimum subscription for public issue of debt securities will be specified as 75% of the base issue size for both NBFCs and Non NBFC issuers.

June 17, 2014 5:44 IST | India Infoline News Service
SEBI in a circular today notified bourses, merchant bankers, CRAs and all issuers norms for base issue size, minimum subscription, retention of over-subscription limit and further disclosures in the prospectus for public issue of debt securities.
SEBI said that the minimum subscription for public issue of debt securities will be specified as 75% of the base issue size for both NBFCs and Non NBFC issuers.
Further, if the issuer does not receive minimum subscription of its base issue size (75%), then the entire application monies shall be refunded within 12 days from the date of the closure of the issue. In the event, there is a delay, by the issuer in making the aforesaid refund, then the issuer shall refund the subscription amount along with interest at the rate of 15% per annum for the delayed period.
However, the issuers issuing tax-free bonds, as specified by CBDT, shall be exempted from the above proposed minimum subscription limit.
In any public issue of debt securities, it has been decided that the Base Issue size shall be minimum Rs 100 crore.
The amount earmarked for "General Corporate Purposes", shall not exceed 25% of the amount raised by the issuer in the proposed issue.

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