Sebi issues fresh norms for debt securities

The norms will not apply to the issue and listing of securitised debt instruments and security receipts, for which a separate regulatory regime in place. The norms provide for rationalised disclosure requirements for public issues, wherein the emphasis has been placed on due diligence, adequate disclosures and credit rating.

It has also emphasised the role and obligations of debenture trustees, execution of trust deed, creation of security and of debenture redemption reserve. Merchant bankers are required to file draft offer document with the stock exchange and are responsible for due diligence for the issue.