SEBI streamlines process for public issue of debt securities

SEBI’s board has decided to reduce the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers.

Further, the minimum subscription period has been cut from 3 to 2 working days, and the listing timeline has been reduced from T+6 to T+3 working days, which will be initially optional for one year and mandatory thereafter, Sebi chief Madhabi Puri Buch said in a press conference.

Also, Sebi has provided flexibility in advertising public issues through electronic modes, with QR codes/links in newspapers and harmonised application procedures using UPI for individual investors up to ₹5 lakh while retaining other application modes.

"With a view to facilitate ease of doing business and provide flexibility to issuers, the Board has approved the proposal to streamline the public issue process for debt securities and non-convertible redeemable preference shares (NCRPS) to provide faster access of funds for issuers," SEBI said.

Further, Sebi has simplified disclosure requirements for non-convertible securities in the offer documents. It has removed the requirement for PAN and personal address disclosure of promoters in offer documents.

The regulator clarified the key operational and financial parameters will be disclosed in line with financial information requirements. It provided details of branches and vendors via QR code and web link, with information available to debenture trustees.

SEBI has aligned disclosure procedures for the use of issue proceeds and payment obligation timelines for listed commercial papers with debt securities. In addition, the regulator has approved guidelines for Category I and II AIF Borrowing and tenure extensions for Large Value Fund (LVF).

Under this, Sebi has decided to allow Category I and II AIFs to temporarily borrow for up to 30 days to cover temporary investor shortfalls when making investments. Borrowing costs will be charged to the investors responsible for the shortfall. Further, a 30-day gap will be required between consecutive borrowings. Sebi said that LVF tenure extensions will be limited to five years and require approval from two-thirds of unit holders by value.

If not liquidated after extension, LVF can opt for further dissolution periods like other AIFs.

SEBI said existing LVFs must align their extension terms with the new five-year cap within three months, with the option to revise the base tenure of the scheme with investor consent.