9911796707
TMI BlogContinuous disclosures and compliances by listed entities under SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 (ILDM Regulations) prescribe disclosures to be made by issuers making public issues of debt securities or seeking listing of municipal debt securities issued on private placement basis to the Stock Exchange(s). SEBI vide Circular No. CIR/IMD/DF1/60/2017 ( hereinafter to be referred as ILDM Circular ) dated June 19, 2017 had specified continuous disclosures and compliance by issuers of debt securities under ILDM Regulations. 2. Subsequently, ILDM regulations have been amended to, inter alia, widen the definition of issuers, revise timelines for submission of annual and half yearly financial results, structure payment mechanism through escrow accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year. (ii) The final annual audited financial results as audited by CAG and after approval of the same by the Standing Committee and/or the Governing Body or Board of Directors of the listed entities, as applicable, shall be submitted to the Stock exchange(s) within nine months from the end of the financial year. 2.1.3. Preparation and Submission of Financial Results While preparing financial results, the listed entities shall comply with the following (a) The half yearly un-audited financial results and annual audited financial results shall contain comparative information for the immediately preceding corresponding half year or financial year respectively. (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice municipal debt securities (c) Clause 2.2.2.(c) of the ILDM Circular regarding timely payment of interest or principal obligations or both is substituted to read as under: (c) Timely payment of interest or principal obligations or both The listed entities shall submit a certificate to the stock exchange(s) intimating the status of payment of interest or principal or both within five working days of the same becoming due in respect of municipal debt securities. (d) Clause 2.3.2. of ILDM Circular regarding Credit rating is modified to read as under:- 2.3.2. Credit Rating (a) Every credit rating shall be reviewed at least once a year, by a registered cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the minimum balance from other accounts. 4.1.3. Sinking fund account (a) A Sinking fund account shall be created for redemption of municipal debt securities. (b) The listed entities shall transfer the principal amount due for repayment, as per the timelines and amount specified in the offer document or preliminary placement memorandum. The amount received in the No lien escrow account may be transferred to this account to maintain the required balance in the Sinking fund account . 4.1.4. General Account (a) The surplus funds in the No lien escrow account after meeting minimum balance in the Interest payment account and Sinking funding account can be transferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceeds for execution of the projects as stated in the offer document/ placement memorandum, as applicable, on a half yearly basis along with financial results to the stock exchange(s). 9.4 Day Count Convention (a) The day count convention for calculation of interest payment for listed municipal debt securities shall be Actual/ Actual. The manner of calculation of Actual/ Actual for municipal debt securities shall be as specified in Clause I of SEBI Circular no. CIR/IMD/DF/18/2013 dated October 29, 2013 and Circular no. CIR/IMD/DF-1/122/2016 dated November 11, 2016 issued for debt securities listed under ILDS Regulations. 5. The provisions of this circular shall come into force with immediate effect. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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