Date: 2020-06-08Category: Not ApplicableState: Union GovernmentCountry: India
Relaxation from compliance with certain provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and SEBI (Non-Convertible Redeemable Preference Shares) Regulations, 2013 and certain SEBI Circulars due to the COVID -19 virus pandemic
**Summary:**
SEBI Circular SEBI/HO/DDHS/CIR/P/2020/098, dated June 08, 2020, provides further relaxation from compliance with specific provisions of the SEBI Issue and Listing of Debt Securities Regulations, 2008, SEBI Non-Convertible Redeemable Preference Shares Regulations, 2013, and other related SEBI circulars, due to the ongoing COVID-19 pandemic. This circular partially amends SEBI circular no. SEBI/HO/DDHS/ONP/2020/41, dated March 23, 2020, by extending the relaxation period by one month for issuers intending to list Non-Convertible Debentures (NCDs), Non-Convertible Redeemable Preference Shares (NCRPS), and Commercial Papers (CPs) regarding the disclosure of financial results.
Specifically, the circular modifies Clause 5 of the earlier circular, granting the following timeline relaxations:
| Particulars | Available Date for Issuance | Extended Date for Issuance | Period of Relaxation | Cutoff Date for Financials |
|---|---|---|---|---|
| NCDs/NCRPS | On or before September 30, 2019 | On or before March 31, 2020 | 91 days | As on June 30, 2020 |
| CPs | | | | As on June 30, 2020 |
The circular, effective immediately, is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulations 31 and 32 of the SEBI ILDS Regulations, 2008, and Regulations 26 and 27 of SEBI NCRPS Regulations, 2013. The relaxations are subject to the provisions of the Companies Act, 2013, and related rules.
Stock Exchanges are advised to bring the provisions of this circular to the attention of all listed entities and disseminate the information on their websites.
The circular is available on the SEBI website (www.sebi.gov.in) under the category 'Legal Circulars'. For further information, contact Richa G. Agarwal, Deputy General Manager, Department of Debt and Hybrid Securities, at richag@sebi.gov.in or via phone at +91-22-26449596.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): Regulatory body for securities markets in India, responsible for issuing the circular.
SEBI Issue and Listing of Debt Securities Regulations, 2008: Regulations pertaining to the issuance and listing of debt securities as specified by SEBI.
SEBI Non-Convertible Redeemable Preference Shares Regulations, 2013: Regulations concerning non-convertible redeemable preference shares as specified by SEBI.
SEBI LODR Regulations: Regulations related to Listing Obligations and Disclosure Requirements by SEBI.
COVID 19 virus pandemic: The global pandemic that prompted SEBI to issue relaxations in compliance requirements.
Non Convertible Debentures (NCDs): A type of debt instrument that cannot be converted into equity shares.
Non-Convertible Redeemable Preference Share (NCRPS): A type of preference share that is not convertible into equity shares but is redeemable.
Companies Act, 2013: An Act of Parliament of India that regulates Indian companies.
CIRCULAR
SEBI/HO/DDHS/CIR/P/2020/098 June 08, 2020
To,
All listed issuers
All Recognized Stock Exchanges
All Debenture Trustees
All Registered Merchant Bankers
Madam / Sir,
Sub: Relaxation from compliance with certain provisions of the SEBI (Issue and
Listing of Debt Securities) Regulations, 2008, SEBI (Non-Convertible Redeemable
Preference Shares) Regulations, 2013 and other SEBI Circulars due to the COVID -
19 virus pandemic
1. SEBI vide circular no. SEBI/HO/DDHS/ON/P/2020/41 dated March 23, 2020 specified
guidelines for relaxation from compliance with certain provisions of the SEBI LODR
Regulations and other SEBI Circulars due to the COVID -19 virus pandemic.
2. In partial amendment to the aforesaid circular, it has been decided to extend the
relaxation provided in the circular for issuers who intend/propose to list their Non-
Convertible Debentures (NCDs) /Non-Convertible Redeemable Preference Share
(NCRPS) /Commercial Papers (CPs) for disclosure of financial results for another one
month.
3. Accordingly, Clause 5 of the circular stands modified as under:
“In order to enable listed issuers who intend/propose to list their NCD/NCRPS/CPs, it
has been decided to grant the following relaxations in timelines:
Particulars Available Date for Extended date Period of
Financials issuance for issuance relaxation
Cut-off date for As on On or before On or before 91 days
issuance of September 30, March 31, June 30, 2020
NCDs/NCRPS 2019 2020
/CPs
14. This circular shall come into force with immediate effect. The Stock Exchanges are
advised to bring the provisions of this circular to the notice of all listed entities and also
disseminate on their websites.
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 Regulations 31 and 32 of
the SEBI (ILDS) Regulations, 2008, Regulations 26 and 27 of SEBI (NCRPS)
Regulations, 2013, the relaxations contained herein are subject to the provisions of
the Companies Act, 2013 and rules made thereunder.
6. The circular is available on SEBI website at www.sebi.gov.in under the category -
'Legal -Circulars'
Yours faithfully,
Richa G. Agarwal
Deputy General Manager
Department of Debt and Hybrid Securities
Email id: richag@sebi.gov.in
Phone: +91-22-26449596
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