**Summary:**
SEBI Circular SEBI/HOD/DDHS/PoD1/CIR/2024/142, dated October 18, 2024, clarifies the permissibility of using "3-in-1" type accounts (linked online trading, demat, and bank accounts) for submitting applications in public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitized debt instruments. This clarification supplements the application processes outlined in Chapter I, Para 2 of Master Circular SEBI/HO/DDHS/PoD1/CIR/2024/54 dated May 22, 2024, and notwithstanding the provision specified under para 2 of SEBI circular SEBI/HOD/DDHS/PoD1/CIR/2024/128 dated September 24, 2024. The circular addresses feedback received by SEBI regarding the need for explicit guidance on the use of these accounts. It is issued under the authority of 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, Regulation 29 of the SEBI Issue and Listing of Municipal Debt Securities Regulations, 2015, and Regulation 48 of the SEBI Issue and Listing of Securitised Debt Instruments and Security Receipts Regulations, 2008. The circular aims to protect investor interests and promote the development and regulation of the securities market. The circular is available on the SEBI website under the "Legal > Circulars" section. Contact Rohit Dubey, General Manager, Department of Debt and Hybrid Securities, at 91 022 2644 9510 or rohitd@sebi.gov.in for further information.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body issuing the circular, responsible for regulating the securities market in India.
SEBI Issue and Listing of NonConvertible Securities Regulations, 2021: A set of regulations established by SEBI governing the issuance and listing of non-convertible securities.
SEBI Issue and Listing of Municipal Debt Securities Regulations, 2015: A set of regulations established by SEBI governing the issuance and listing of municipal debt securities.
SEBI Issue and Listing of Securitised Debt Instruments and Security Receipts Regulations, 2008: A set of regulations established by SEBI governing the issuance and listing of securitised debt instruments and security receipts.
Master Circular no. SEBIHODDHSPoD1PCIR202454 dated May 22, 2024: A master circular issued by SEBI pertaining to the application process for public issues of securities.
SEBI circular SEBIHODDHSDDHSPoD1PCIR2024128 dated September 24, 2024: A circular issued by SEBI relevant to the application process for public issues of securities.
Securities and Exchange Board of India Act, 1992: The legislation that established the Securities and Exchange Board of India and defines its powers and functions.
Debt securities, nonconvertible redeemable preference shares, municipal debt securities or securitised debt instruments: Types of securities to which the clarification regarding the usage of 3 in 1 type accounts applies.
CIRCULAR
SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/142 October 18, 2024
To,
Issuers who propose to list debt securities, non-convertible redeemable
preference shares, municipal debt securities or securitised debt instruments;
Recognised Stock Exchanges;
Registered Merchant Bankers;
Registered Stock Brokers;
Depositories and Registered Depository Participants;
Registered Bankers to an Issue;
Registered Registrars to an Issue and Share Transfer Agents; and
Self Certified Syndicate Banks (SCSBs)
Madam/ Sir,
Subject: Clarification with regard to usage of 3 – in – 1 type accounts for making
an application in public issue of securities
1. Para 2 of Chapter I (Application process in case of public issues of securities and
timelines for listing) 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 application process in case of public issue of
securities under SEBI (Issue and Listing of Non-Convertible Securities) Regulations,
2021, SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 and
SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts)
Regulations, 2008.
2. SEBI has received feedback that there is a need to explicitly specify the usage of 3-
in-1 type accounts for making an application in public issue of debt securities, non-
convertible redeemable preference shares, municipal debt securities and
securitised debt instruments.3. Accordingly, it is clarified that, in addition to existing modes of making an application
in public issue of securities as specified under para 2 of the aforesaid Master Circular
and notwithstanding the provision specified under para 2 of SEBI circular
SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/128 dated September 24, 2024,
investors may continue to submit the bid-cum application form online using the facility
of linked online trading, demat and bank account (3-in-1 type accounts).
4. This 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,
Regulation 29 of SEBI (Issue and Listing of Municipal Debt Securities) Regulations,
2015 and Regulation 48 of SEBI (Issue and Listing of Securitised Debt Instruments
and Security Receipts) Regulations, 2008 to protect the interest of investors in
securities and to promote the development of, and to regulate the securities
market.
5. This Circular is available at www.sebi.gov.in under the link “Legal Circulars”.
Yours faithfully,
Rohit Dubey
General Manager
Department of Debt and Hybrid Securities
+91-022 2644 9510
rohitd@sebi.gov.in