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Sebi extends time for comments on reducing listing time for public issue of debt securities

Press Trust of India  |  New Delhi 

Markets regulator today extended the deadline till May 30 for public comments on proposed norms to drastically cut the timeline for listing of debt securities to six days from 12 days at present.

The last date has been extended after taking into consideration, representations from various quarters as the initial deadline ended on May 14.

In a statement issued today, said it has decided to extend time till May 30 for submission of public comments on the consultation paper regarding reduction in timelines for public issue of debt securities.

Under the proposed norms, the regulator would reduce the timeline for listing of debt securities to six days from 12 days at present.

Besides, the (Sebi) has proposed to make ASBA (Application Supported by Blocked Amount) mandatory for all the investors applying in a public issue of debt securities.

The mandatory would reduce the time taken for collecting banks to commence clearing of payment instruments, forwarding application forms along with to and undertaking of technical rejection test.

In addition, submission of clearance status of payment instrument should done in 4-5 days as against the present time of 7 days.

The proposals are aimed at ensuring uniformity, standardisation and streamlining of issuance of debt securities with that of equity shares and convertibles.

noted that over the last few years, the corporate bonds market has emerged as one of the major sources of funding. Concurrently, various regulatory initiatives such as implementation of centralised database for corporate bonds, introduction of platform among others have been taken towards developing such market.

In this direction, it is felt that existing issuance processes may be rationalised further to make it easier and friendly for both the issuers and investors.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 18 2018. 18:25 IST