Sebi board likely to discuss warrants issue norms tomorrow

Capital markets regulator Sebi is expected to discuss changes to norms governing issuance of partly paid shares and warrants as well as amendments to regulations for securitisation trustees.
Besides, the board is likely to take up amendments to certain regulations related to listing of debt securities.
The board, scheduled to meet here tomorrow, would deliberate upon a slew of issues including amendments to various regulations, sources said.
According to them, the Securities and Exchange Board of India (Sebi) plans to amend norms related to issuance of partly paid shares and warranrts by domestic companies.
As per the proposal, in case of allotment of warrants along with public or rights issues, entities would be allowed to issue warrants having a tenure of 18 months from the current limit of 12 months, sources said.

Sebi plans to bring in stricter norms, including minimum networth requirement, for trustees managing issuance of securitised debt instruments.

The watchdog is likely to specify a minimum networth requirement of Rs 2 crore for these trustees.
Besides, the regulator is looking to come out with a standardised term sheet for securitisation transactions, that covers both public issues and private placements.
Securitisation refers to creating a financial instrument by pooling various debt instruments and then selling them to investors.
Another proposal pertains to amending regulations to provide for consolidation and re-issuance of debt securities in the corporate bond market as well as "call and put options".

A high level expert panel on corporate bonds and securitisation had recommended consolidation of privately placed bonds to avoid fragmentation of debt market with multiple issues. It had also suggested re-issuances, which would help in creation of large floating stocks needed to enhance market liquidity.
The board is also likely to take note about the status of non-operational stock exchanges.