Market regulator Securities and Exchange Board of India (Sebi) has introduced guidelines which allow companies to file a document for listing of debt securities issued through private placement.
The shelf disclosure documents would have a validity of 180 days, according to Sebi notification on October 12.
In its board meeting in August, the Sebi had said that a clause for a shelf placement document with a validity of 180 days would be provided for frequent issues through private placement.
As per the norms, “an issuer making a private placement of debt securities and seeking listing thereof on a recognised stock exchange may file a Shelf Disclosure Document containing disclosures...” the Sebi said.
Further, the regulator said that an issuer filing a shelf disclosure document would not be “required to file disclosure document, while making subsequent private placement of debt securities for a period of 180 days from the date of filing of the shelf disclosure document”.
The regulations state that the companies while making private placement under shelf disclosure document would have to disclose documents such as the memorandum and articles of association for the allotment of the debt securities and copy of last three years audited annual reports.
Besides, an issuer needs to file a copy of the Board authorising the borrowing and list of authorised signatories.
The issuer has to submit disclosures to the Debenture Trustee in electronic form at the time of allotment of the debt securities.
The Sebi said the company seeking to list debt securities via private placement needs to file with the concerned stock exchange “updated disclosure document with respect to each tranche, containing details of the private placement and material changes, if any, in the information provided in Shelf Disclosure Document.”