PR No.03/2008 dated 03.01.2008: SEBI has proposed simplification of the primary debt market issuance process. The Consultative Paper on "Draft SEBI (Issue and Listing of Debt Securities) Regulations, 2008" proposes to simplify the primary debt market issuance process with a view to developing a vibrant, dynamic and transparent corporate debt market in the country. Process simplified is expected to make primary debt issuance cost effective and less time consuming.
The paper emphasizes that due diligence, proper disclosures and credit rating will be key elements of corporate debt issuances, which will be ensured by SEBI mainly through certifications issued by the merchant bankers. Thus, enhanced responsibilities to merchant bankers for exercising due diligence and issuance of certificates in regard to new issuances and mandatory listing of private placement of debt under Section 67(3) of Companies Act. The Consultative Paper has proposed provisions for e-issuances of corporate debt and for introducing simplified listing requirements of debt for already listed issuer.
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The paper emphasizes that due diligence, proper disclosures and credit rating will be key elements of corporate debt issuances, which will be ensured by SEBI mainly through certifications issued by the merchant bankers. Thus, enhanced responsibilities to merchant bankers for exercising due diligence and issuance of certificates in regard to new issuances and mandatory listing of private placement of debt under Section 67(3) of Companies Act. The Consultative Paper has proposed provisions for e-issuances of corporate debt and for introducing simplified listing requirements of debt for already listed issuer.
Manupatra Legal Database
Manupatra Round up
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