Executive Summary:
This document outlines amendments to the Securities and Exchange Board of India (SEBI) Issue and Listing of Debt Securities Regulations, 2008. These amendments, effective from the date of publication in the Official Gazette, address the definition of "wilful defaulter" and disclosure requirements related to wilful defaulters in debt security listings. The regulations are issued under Section 30 of the SEBI Act, 1992.
Key Points / Main Content:
Definition of "Wilful Defaulter":
* A "wilful defaulter" includes issuers categorized as such by any bank or financial institution, according to Reserve Bank of India guidelines, and includes issuers whose director or promoter is categorized similarly.
Public Issue Restrictions:
* Issuers are prohibited from making public debt security issues if the issuer, person in control, promoter, or director is restricted by the Board from accessing the securities market.
* Issuers, promoters, or directors who are wilful defaulters or in default of interest or principal repayment for over six months are also prohibited.
Disclosure Requirements for Private Placement Debt Securities:
* For debt securities listed via private placement, specific disclosures are required:
* Name of the bank declaring the entity as a wilful defaulter.
* The year the entity was declared a wilful defaulter.
* Outstanding amount at the time of declaration.
* Name of the entity declared as a wilful defaulter.
* Steps taken for removal from the list of wilful defaulters.
* Other disclosures deemed fit by the issuer for informed investor decisions.
* Any other disclosure as specified by the Board.
* The fact that the issuer, promoters, or directors are wilful defaulters must be prominently disclosed on the cover page with cross-referencing.
* These disclosures must be in a separate, identifiable chapter or section in the Table of Contents.
Impact Analysis:
Issuers of Debt Securities:
* Impact: Issuers face stricter eligibility criteria for public debt offerings and increased disclosure requirements, especially concerning "wilful defaulter" status.
* Action Required: Implement procedures to ensure compliance with the new regulations, including enhanced due diligence on "wilful defaulter" status and proper disclosure mechanisms.
Investors:
* Impact: Investors gain access to more comprehensive information about potential risks associated with debt securities, particularly concerning issuers with a history of default.
* Action Required: Review the updated disclosure information to make informed investment decisions.
Securities and Exchange Board of India (SEBI):
* Impact: SEBI's regulatory framework for debt securities is strengthened through enhanced disclosure norms and stricter issuer eligibility.
* Action Required: Enforce the updated regulations and monitor compliance by issuers.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for securities market in India.
Securities and Exchange Board of India Act, 1992: The act under which SEBI's powers are conferred.
Securities and Exchange Board of India Issue and Listing of Debt Securities Regulations, 2008: The principal regulations being amended.
Securities and Exchange Board of India Issue and Listing of Debt Securities Amendment Regulations, 2016: The current amendment regulations.
Reserve Bank of India (RBI): The central bank of India, which issues guidelines on wilful defaulters.
Official Gazette: The official government publication where the regulations are published.
U. K. Sinha: The Chairman of SEBI at the time of this notification.
Mumbai, Maharashtra: Location where the SEBI notification was issued.
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
la- 225] ubZ fnYyh] cq/okj] 25] 2016@T;s"B 4] 1938
No. 225] NEW DELHI, WEDNESDAY, MAY 25, 2016/ JYAISTHA 4, 1938
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
अअअअििििधधधधससससचचूूचचूू ननननाााा
मु(cid:3)बई, 10 मई, 2016
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड(cid:9) (cid:9) (cid:9) (cid:9) ((((ऋऋऋऋणणणण (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू ततततयययय(cid:21)(cid:21)(cid:21)(cid:21) ककककाााा ििििननननगगगगमम(cid:9)(cid:9)मम(cid:9)(cid:9) औऔऔऔरररर इइइइननननकककक(cid:25)(cid:25)(cid:25)(cid:25) ससससचचूूचचूू ीीीीबबबब(cid:28)(cid:28)(cid:28)(cid:28)तततताााा)))) ((((ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,,
2222000011116666
सससस..ंं..ंं ससससबबेेबबेे ीीीी////एएएएलललल....एएएए....डडडडीीीी....----एएएएनननन....आआआआरररर....ओओओओ....////जजजजीीीी....एएएएनननन....////2222000011116666----11117777////000000004444.— बोड,(cid:8) भारतीय (cid:14)ितभूित और िविनमय बोड (cid:8)
अिधिनयम, 1992 (1992 का 15) क(cid:22) धारा 30 के अधीन (cid:14)द(cid:26) शि(cid:28)य(cid:29) का (cid:14)योग करत े ए एत"ारा भारतीय
(cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22) सचू ीब(ता) िविनयम, 2008 का और
संशोधन करने के िलए िन+िलिखत िविनयम बनाता ह,ै अथा(cid:8)त ् :-
1. इन िविनयम(cid:29) को भारतीय (cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22)
सूचीब(ता) (संशोधन) िविनयम, 2016 कहा जा सकेगा ।
2. व े राजप2 म3 उनके (cid:14)काशन क(cid:22) तारीख को (cid:14)वृ(cid:26) ह(cid:29)गे ।
3. भारतीय (cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22) सूचीब(ता) िविनयम,
2008 म3 :–
(I) िविनयम 2 म,3 उप-िविनयम (1) म,3 -
(1) खंड (ड) म,3 िच8न "।" के िलए, िच8न ";" (cid:14)ित9थािपत हो जाएगा ।
(2) खंड (ड) के प:ात,् िन+िलिखत खंड अंत:9थािपत ;कया जाएगा, अथा(cid:8)त, -
2627 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
"(ढ) "इरादतन चूककता"(cid:8) से वह िनग(cid:8)मकता (cid:8) (इ<युअर) अिभ(cid:14)ेत ह,ै िजस े भारतीय =रज़व (cid:8)
ब?क @ारा इरादतन चूककता(cid:8)A के सबं ंध म 3 जारी ;कए गए माग(cid:8)दश(cid:8)क िस(ाँत(cid:29)
(गाइडलाइCस) के अनुसार, ;कसी ब?क या िव(cid:26)ीय स9ं था या उनके कनसॉEटयम @ारा,
इरादतन चूककता (cid:8) के Gप म3 वगHकृत ;कया गया हो और िजसम 3 वह िनग(cid:8)मकता (cid:8) सि(cid:3)मिलत
ह ै िजसके िनदशे क (डायरेIटर) या सं(cid:14)वत(cid:8)क ((cid:14)ोमोटर) को इस Gप म 3 वगHकृत ;कया गया
हो ।"
(II) िविनयम 4 म,3 उप-िविनयम (1) के िलए, िन+िलिखत उप-िविनयम (cid:14)ित9थािपत हो जाएगा,
अथा(cid:8)त,् -
"(1) कोई भी िनग(cid:8)मकता (cid:8) (इ<युअर) ऋण (cid:14)ितभूितय(cid:29) (डैट िसIयू=रटीज़) का कोई सावज(cid:8) िनक
िनग(cid:8)म (पिJलक इ<य)ू नहK लाएगा, य;द इन िविनयम(cid:29) म 3 यथा उपबंिधत (cid:14)ाGप (cid:14)9ताव द9तावेज
(LाMट ऑफर डॉIयूम3ट) या अंितम (cid:14)9ताव द9तावेज दािखल ;कए जान े क(cid:22) तारीख को :
(क) िनग(cid:8)मकता (cid:8) (इ<युअर) अथवा िनग(cid:8)मकता (cid:8) पर िनयं2ण रखने वाल े Nि(cid:28) या उसके सं(cid:14)वतक(cid:8)
((cid:14)ोमोटर) या उसके िनदशे क (डायरेIटर) को बोड (cid:8) @ारा (cid:14)ितभूित बाजार (िसIयू=रटीज़
माकQट) म3 प चँ रखन े से या (cid:14)ितभूितय(cid:29) (िसIयू=रटीज़) म 3 Nौहार (लेनदने ) करन े स े
अवS( या (cid:14)ितिष( या िववUजत ;कया गया हो; या
(ख) िनग(cid:8)मकता (cid:8) अथवा उसका कोई सं(cid:14)वत(cid:8)क ((cid:14)ोमोटर) या िनदशे क (डायरेIटर) इरादतन
चूककता (cid:8) हो, या उसने 9वय ं @ारा जनता को िनग(cid:8)िमत (इ<यूड) ऋण (cid:14)ितभूितय(cid:29) (डैट
िसIयू=रटीज़), य;द कोई ह(cid:29), के सबं ंध म3, छह महीन(cid:29) से अिधक क(cid:22) अविध तक, Jयाज
अदा करन ेम 3 या मूलधन क(cid:22) रकम क(cid:22) चुकौती (का (cid:14)ितसंदाय) करन े म 3 चूक क(cid:22) हो ।"
(III) अनुसूची I म3, पैरा 3 म3, उप-पैरा ख के प:ात्, िन+िलिखत उप-पैरा अंत:9थािपत ;कया जाएगा,
अथा(cid:8)त,् -
""""गगगग.... इइइइररररााााददददततततनननन चचचचककूूककूू ससससबबंंबबंं धधंंधधंं ीीीी (cid:1)(cid:1)(cid:1)(cid:1)ककककटटटटीीीीककककररररणणणण
(1) िनजी 9थानन ((cid:14)ाइवेट Vलेसम3ट) आधार पर लाई गई ऋण (cid:14)ितभूितय(cid:29) (डैट िसIयू=रटीज़)
क(cid:22) सूचीब(ता (िलW9टग) के मामले म3, िन+िलिखत (cid:14)कटीकरण ;कए जाएगँ े :
(क) उस ब?क का नाम, िजसन ेउस ए=ं टटी को इरादतन चूककता(cid:8) घोिषत ;कया हो;
(ख) वह वष,(cid:8) िजसम 3 उस ए=ं टटी को इरादतन चूककता (cid:8) घोिषत ;कया गया हो;
(ग) उस समय बकाया रकम, जब उस ए=ं टटी को इरादतन चूककता (cid:8) घोिषत ;कया
गया हो;
(घ) उस ए=ं टटी का नाम, िजसे इरादतन चूककता (cid:8) घोिषत ;कया गया हो;
(ङ) इरादतन चूककता(cid:8)A क(cid:22) सूची स े नाम हटाए जान े के िलए उठाए गए कदम, य;द
कोई ह(cid:29);
(च) ऐसे अCय (cid:14)कटीकरण, जो िनवेशक(cid:29) (िविनधानकता(cid:8)A) को सोच-समझकर िनणय(cid:8)
लेने म3 समथ(cid:8) बनान ेके उXे<य स ेिनग(cid:8)मकता (cid:8)(इ<युअर) @ारा उिचत समझे जाए;ँ¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(छ) बोड (cid:8) @ारा यथा िनधा(cid:8)=रत कोई अCय (cid:14)कटीकरण ।
(2) इस तYय को मुख पृZ (कवर पेज) पर (सबं ( पृZ(cid:29) क(cid:22) सं[या का उ\लेख करत े ए)
(cid:14)मुखता से (cid:14)कट ;कया जाएगा ;क िनग(cid:8)मकता (cid:8) (इ<युअर) अथवा उसका कोई सं(cid:14)वतक(cid:8)
((cid:14)ोमोटर) या िनदशे क (डायरेIटर) इरादतन चूककता (cid:8) ह ै ।
(3) यहाँ िनधा(cid:8)=रत (cid:14)कटीकरण एक अलग अ]याय या खंड म 3 ;कए जाएगँ े और िजसका 9प^
उ\लेख अनु_मिणका (इंडेIस) / िवषय-सूची म 3 ;कया जाएगा ।"
यू. के. िसCहा, अ]य‘
[िवaापन-III/4/असा./109 ]
पपपपाााादददद (cid:30)(cid:30)(cid:30)(cid:30)टटटट(cid:31)(cid:31)(cid:31)(cid:31)पपपपणणणण ::::
1. भारतीय (cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22) सचू ीब(ता) िविनयम,
2008, स.ं एलएडी-एनआरओ/जीएन/2008/13/127878 @ारा, 6 जून 2008 को भारत के राजप2 म 3
(cid:14)कािशत ए थे ।
2. भारतीय (cid:14)ितभूित और िविनमय बोड (cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22) सचू ीब(ता) िविनयम, 2008
तbप:ात ्:
(क) 12 अ(cid:28)ूबर 2012 को भारतीय (cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22)
सूचीब(ता) (संशोधन) िविनयम, 2012, सं. एलएडी-एनआरओ/जीएन/2012-13/19/5392, @ारा
(ख) 31 जनवरी 2014 को भारतीय (cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22)
सूचीब(ता) (संशोधन) िविनयम, 2014, स.ं एल.ए.डी.-एन.आर.ओ./जी.एन./2013-14/43/207,
@ारा
(ग) 23 मई 2014 को भारतीय (cid:14)ितभूित और िविनमय बोड (cid:8) (फ(cid:22)स का संदाय) (सशं ोधन) िविनयम,
2014, अिधसूचना सं. एल.ए.डी.-एन.आर.ओ./जी.एन./2014-15/03/1089, @ारा
(घ) 24 माच(cid:8) 2015 को भारतीय (cid:14)ितभूित और िविनमय बोड(cid:8) (ऋण (cid:14)ितभूितय(cid:29) का िनग(cid:8)म और इनक(cid:22)
सूचीब(ता) (संशोधन) िविनयम, 2015, स.ं एल.ए.डी.-एन.आर.ओ./जी.एम./2014-15/25/539,
@ारा
(ङ) 2 िसत(cid:3)बर 2015 को भारतीय (cid:14)ितभूित और िविनमय बोड (cid:8) [सूचीब(ता (िलW9टग) बा]यताए ँ और
(cid:14)कटीकरण अपे‘ाएँ] िविनयम, 2015, स.ं सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-16/013,
@ारा संशोिधत ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 10th May, 2016
SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF DEBT
SECURITIES) (AMENDMENT) REGULATIONS, 2016
No. SEBI/LAD-NRO/GN/2016-17/004.─ In exercise of the powers conferred under section 30 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
to further amend the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008, namely:—
1. These regulations may be called the Securities and Exchange Board of India (Issue and Listing of Debt
Securities) (Amendment) Regulations, 2016.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008: -
(I) In regulation 2, in sub-regulation (1),-
(1) in clause (m), for the symbol “.”, the symbol “;” shall be substituted.
(2) after clause (m), the following clause shall be inserted namely, -
"(n) "wilful defaulter" means an issuer who is categorized as a wilful defaulter by any bank or
financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters
issued by the Reserve Bank of India and includes an issuer whose director or promoter is
categorized as such.”
(II) In regulation 4, for sub-regulation (1), the following sub-regulation shall be substituted, namely, -
“(1) No issuer shall make any public issue of debt securities if as on the date of filing of
draft offer document or final offer document as provided in these regulations:
(a) the issuer or the person in control of the issuer or its promoter or its director is restrained
or prohibited or debarred by the Board from accessing the securities market or dealing in
securities; or
(b) the issuer or any of its promoters or directors is a wilful defaulter or it is in default of
payment of interest or repayment of principal amount in respect of debt securities issued
by it to the public, if any, for a period of more than six months.”
(III) In Schedule I, in paragraph 3, after sub- paragraph B, the following sub- paragraph shall be inserted
namely,-
“C. Disclosures pertaining to wilful default
(1) In case of listing of debt securities made on private placement, the following disclosures shall be
made:
(a) Name of the bank declaring the entity as a wilful defaulter;
(b) The year in which the entity is declared as a wilful defaulter;
(c) Outstanding amount when the entity is declared as a wilful defaulter;
(d) Name of the entity declared as a wilful defaulter;
(e) Steps taken, if any, for the removal from the list of wilful defaulters;
(f) Other disclosures, as deemed fit by the issuer in order to enable investors to take informed
decisions;
(g) Any other disclosure as specified by the Board.
(2) The fact that the issuer or any of its promoters or directors is a wilful defaulter shall be disclosed
prominently on the cover page with suitable cross-referencing to the pages.
(3) Disclosures specified herein shall be made in a separate chapter or section, distinctly identifiable
in the Index / Table of Contents."
U. K. SINHA, Chairman
[ADVT-III /4/Exty./109]
Footnote:
1. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 was published in
the Gazette of India on 6th June, 2008 vide No. LAD-NRO/GN/2008/13/127878
2. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 was subsequently
amended on:
(a) October 12th, 2012 by SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2012 vide No.
LAD-NRO/GN/2012-13/19/5392.
(b) January 31st, 2014 by SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2014 vide No.
LAD-NRO/GN/2013-14/43/207.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 5
(c) 23rd May, 2014 by Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2014
vide No. LAD-NRO/GN/2014-15/03/1089.
(d) March 24th, 2015 by SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2015 vide No.
LAD-NRO/GN/2014-15/25/539.
(e) September 2nd, 2015 by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 vide No.
SEBI/LAD-NRO/GN/2015-16/013.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.