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Sebi eases norms for issuance of debt securities, removes security deposit

The decision comes after the board of Sebi approved a proposal in this regard in its meeting last month

Press Trust of India  |  New Delhi 

Sebi. (Photo: Kamlesh Pednekar)
Sebi. (Photo: Kamlesh Pednekar)

To ease the cost and compliance burden on the issuer of securities, regulator has done away with the requirement of 1 per cent security deposits with exchanges for of

The decision comes after the board of approved a proposal in this regard in its meeting last month.

Currently, 1 per cent of the amount offered for subscription to the public is required to be deposited with the stock exchanges so that complaints relating to refund of application money, allotment of securities and dispatch of certificates among others can be resolved speedily.

In three separate notifications dated October 9, has done away with the requirement of 1 per cent in the cases of public issues of debt securities, non-convertible redeemable preference shares and securitised

The move is expected to ease the cost and compliance burden on the issuers.

First Published: Fri, October 12 2018. 20:50 IST
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