- System for Making Application to Public issue of Debt Securities : SEBI vide circular CIR. /IMD/DF-1/20/2012 dated July 27, 2012 has decided the following in order to facilitate a system for making online applications for public issue of debt securities and to reduce the timelines of the issue process for public issue of debt securities:
- Extend ASBA facility to public issues of debt securities; and
- Provide option for subscribing to debt securities through an online internet interface with a facility to make online payment.
- Apply the timelines for the issue process as provided in SEBI Circular CIR/CFD/DIL/1/2011 dated April 29, 2011 or as notified by SEBI from time to time.
- Contents of Application Form and Abridged Prospectus for Public Issue of Debt Securities: SEBI had notified SEBI (Issue and Listing of Debt Securities) Regulations in 2008 specifying norms for public issue of debt securities and privately placed listed debt securities. With respect to public issue of debt securities, there is currently no specified standard format for the Application Form and Abridged Prospectus. The structure, design, format, contents and organization of information in the Application Form and Abridged Prospectus have been standardized and made uniform for public issues of debt securities as intimated by SEBI vide circular CIR/IMD/DF-1/19/2012 dated 25th July, 2012.
- Amendment to definition of Qualified Foreign Investor (QFI) and QFI investment in debt mutual fund schemes which invest in infrastructure – SEBI vide circular CIR/ IMD/ FII&C/ 18/ 2012 dated July 20, 2012 has amended the definition of Qualified Foreign Investor (QFI) and QFI investment in debt mutual fund schemes which invest in infrastructure.
- Establishment of Connectivity with both depositories NSDL and CDSL –Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement – SEBI has vide circular CIR/MRD/DP/ 19 /2012 dated July 20, 2012 advised the stock exchanges to consider shifting the trading in the securities of Companies listed in ‘Annexure A’ to normal Rolling Settlement subject to the condition that at least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode. The other conditions are also mentioned in the circular.
- Investment by Qualified Foreign Investors (QFI) in Indian Corporate Debt.- Qualified Foreign Investors (QFIs) were allowed to invest in schemes of Indian it has now been decided to allow QFIs to invest in Indian corporate debt securities and debt schemes of Indian mutual funds by opening a demat account with a qualified Depository Participant. SEBI has now vide CIR/ IMD/ FII&C/ 17 / 2012 dated July 18, 2012 decided to allow QFIs to invest in Indian corporate debt securities and debt schemes of Indian mutual funds subject to the conditions specified in the circular.
- Comprehensive guidelines on Offer For Sale (OFS) of Shares by Promoters through the Stock Exchange Mechanism: SEBI vide circular CIR/MRD/DP/ 18 /2012 dated 18th July, 2012 has replaced the existing procedures and instructions regarding offer for sale by of shares by promoters by issuing the revised guidelines in this regard.
- Amendment to the Equity Listing Agreement – Platform for E-Voting by Shareholders of Listed Entities: SEBI vide circular no. CIR/CFD/DIL/6/2012, dated 13th July, 2012 has in order to effectively implement the process of e- voting, brought about amendments in the listing agreement wherein after Clause 35A, a new Clause 35B shall be inserted namely;-“35B. (i) The issuer agrees to provide e-voting facility to its shareholders, in respect of those businesses, which are transacted through postal ballot. Such e-voting facility shall be kept open for such period specified under the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 for shareholders to send their assent or dissent.(ii) Issuer shall continue to enable those shareholders, who do not have access to e-voting facility, to send their assent or dissent in writing on a postal ballot pursuant to the provisions of the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 or amendments made thereto.(iii) Issuer shall utilize the service of any one of the agencies providing e-voting platform, which is in compliance with conditions specified by the Ministry of Corporate Affairs, Government of India, from time to time.
(iv) Issuer shall mention the Internet link of such e-voting platform in the notice to their shareholders”
- Reduction of Time-line for Transfer of Equity Shares and Prescription of Time-line for Transfer of Debt Securities: SEBI vide circular no.CIR/MIRSD/8 /2012 dated 5th July, 2012 has intimated that with a view to expedite the transfer process in the interest of the investors, it has been decided, in consultation with Registrars Association of India (RAIN), Stock Exchanges and market participants to reduce the time-line for registering the transfer of shares to 15 days. The same time-line shall also be applicable for transfer of debt securities.