Reduction in denomination of debt securities and non-convertible redeemable preference shares

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..... ed Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper dated May 22, 2024 ) 1. Chapter V (Denomination of issuance and trading of Non-convertible Securities) of the Master Circular no. SEBI/HO/DDHS/PoD1/P/CIR/2024/54 dated May 22, 2024 , (hereinafter referred as Master Circular ) issued by SEBI, prescribes provisions pertaining to denomination of issuance and trading of non-convertible securities. 2. Market participants have expressed that lower ticket size of debt securities may encourage more non-institutional investors to participate in the corporate bond market which in turn may also enhance liquidity. 3. In view of the above, the following amendments are being made in Chapter V (Denomination of issuance .....

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..... redit Rating Agencies (CRAs) shall verify the documentation related to the specified support considerations to ensure the following: a) The support is unconditional, irrevocable, and legally enforceable till all the obligations of the security has been paid to the investors. b) The support provider has a lower probability of default on a continuous basis, compared with the issuer, till the time such instruments are outstanding. (iv) With respect to a shelf placement memorandum or General Information Document (GID) which is valid as on the effective date of the circular , the issuer may raise funds through tranche placement memorandum or Key Information Document at a face value at Rs. Ten Thousand provided at least one Merchant Banker is app .....

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..... his circular. 5. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 6. This Circular is available at www.sebi.gov.in under the link Legal Circulars . Yours faithfully, Rishi Barua Deputy General Manager Department of Debt and Hybrid Securities +91-022 2644 9673 [email protected] - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementind .....

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