Regulation 17A - Right to recall or redeem prior to maturity - Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008

1 [Right to recall or redeem prior to maturity 17A. An issuer making public issue of debt securities may recall such securities prior to maturity date at his option (call) or provide such right of redemption prior to maturity date (put) to all the investors or only to retail investors, at their option, subject to the following: a) Such right to recall or redeem debt securities prior to maturity date is exercised in accordance with the terms of issue and detailed disclosure in this regard is made in the offer document including date from which such right is exercisable, period of exercise (which shall not be less than three working days), redemption amount (including the premium or discount at which such redemption shall take place); b) The issuer or investor may exercise such right with respect to all the debt securities issued or held by them respectively or with respect to a part of the securities so issued or held ; c) In case of partial exercise of such right in accordance with the terms of the issue by the issuer , it shall be done on proportionate basis only; d) No such right shall be exercisable before expiry of twenty four months from the date of issue of such debt securities; e) Issuer shall send notice to all the eligible holders of such debt securities at least twenty one days before the date from which such right is exercisable; f) Issuer shall also provide a copy of such notice to the stock exchange where the such debt securities are listed for wider dissemination and shall make an advertisement in the national daily having wide circulation indicating the details of such right and eligibility of the holders who are entitled to avail such right ; g) Issuer shall pay the redemption proceeds to the investors along with the interest due to the investors within fifteen days from the last day within which such right can be exercised; h) Issuer shall pay interest at the rate of fifteen per cent. per annum for the period of delay, if any, i) After the completion of the exercise of such right, the issuer shall submit a detailed report to the stock exchange for public dissemination regarding the debt securities redeemed during the exercise period and details of redemption thereof. Explanation.- For the purpose of this regulation, retail investor shall mean the holder of debt securities having face value not more than rupees two lakh.] ************** NOTES:- 1 Inserted by the SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2015 w.e.f. 24-03-15.