Sebi provides clarity on lock-in period for CCDs

Markets regulator Sebi today provided clarity to PC Jeweller on the lock-in period required for unlisted compulsorily convertible debentures.
The watchdog has explained the applicability of ICDR (Issue of Capital and Disclosure Requirements) with respect to such debentures.
PC Jeweller had issued little over 42.6 lakh CCDs to DVI Fund (Mauritius) Ltd in May 2016 and these securities were not listed.
To have clarity on regulatory requirements with respect to issuance of these CCDs, the company had sought an informal guidance from the Securities and Exchange Board of India (Sebi).
"...Where the requirement of trading approval is not applicable to the convertible (ie. Where the holder of the CCDs do not intend to list the CCDs within 18 months from the date of allotment), lock-in period shall commence from the relevant date and end on the expiry of six months from the date of allotment of the CCDs," Sebi said quoting ICDR norms.

While giving the guidance, the regulator also said the view is based on the information furnished by the company and that "different facts or conditions might lead to a different result".