SEBI extends relaxation to listed NCDs from sending physical copies of financial statement

Markets regulator SEBI on Thursday provided limited relaxation to issuers of listed non-convertible debt securities from the requirement to send hard copies of key financial documents to investors.

In its circular, the regulator extended an exemption pertaining to Regulation 58(1)(b), which mandates sending hard copies of financial statements and related documents to holders of non-convertible securities who have not registered their email addresses.

The move is in line with the Ministry of Corporate Affairs' (MCA) decision to extend similar relaxations until September 30, 2025.

Based on the MCA's extension and stakeholder requests, SEBI has decided that from October 1, 2024 to June 5, 2025 "no penal" action will be taken for entities having listed non-convertible securities for not sending physical copies of financial statements, including board's report, auditor's report and other documents.

This would be followed by a second phase of relaxation lasting until September 30, 2025, subject to further disclosures made through advertisements.

The entities need to include in their advertisement a web link to the statement showing key details of all documents to ensure that holders of these securities can easily access the information.

This circular is effective immediately.

In April, SEBI came out with a consultation paper in this regard.