Securities Exchange Board of India (SEBI)

Circulars:

Circular on extension of timeline on alignment of employee benefit scheme with SEBI (ESOS and ESPS) Guidelines, 1999

SEBI has issued a circular CIR/CFD/POLICYCELL/3/2014 dated 27^th June, 2014.

SEBI Board has approved certain proposals for framing a new set of regulations concerning employee benefit schemes dealing in shares of the company. The new regulations shall come into force as and when notified.

SEBI has decided to extend the time line for aligning existing employee benefit schemes with the SEBI (ESOS and ESPS) Guidelines, 1999 till the new regulations are notified.

However, it is reiterated that prohibition on acquiring securities from the secondary market shall continue till the existing schemes are aligned with the new regulations to be notified.

Base Issue Size, Minimum Subscription, Retention of Over-Subscription Limit and further disclosures in the Prospectus for Public Issue of Debt securities

SEBI has issued a circular dated 17^th June, 2014 and the provisions of this circular shall be applicable for the draft offer document for issuance of debt securities filed with the designated stock exchange on or after July 16, 2014.

The circular details regarding the following:

1. Minimum Subscription Limit
2. Base Issue Size
3. Retention of Over-Subscription Limit
4. Further disclosures in the prospectus for Debt Issues

 
Investments by FPIs in Non-Convertible / Redeemable preference shares or debentures of Indian companies

SEBI has issued a circular CIR/IMD/FIIC/13/2014 dated 17^th June, 2014 pursuant to RBI circular RBI/2013-14/632dated June 06, 2014. SEBI has decided as follows:

a) In terms of the RBI circular A.P. (DIR Series) Circular No. 84 dated January 06, 2014, an Indian company is permitted to issue non-convertible/redeemable preference shares or debentures to non-resident shareholders, including the depositories that act as trustees for the ADR/GDR holders by way of distribution as bonus from its general reserves under a Scheme of Arrangement approved by a Court in India under the provisions of the Companies Act, as applicable, subject to no-objection from the Income Tax Authorities.

b) FPIs are permitted to invest on repatriation basis, in non-convertible/redeemable preference shares or debentures issued by an Indian company in terms of the above RBI circular and listed on recognized stock exchanges in India.

c) The investments by FPIs in the abovementioned securities shall be reckoned against the Corporate Debt Investment Limits (US$ 51 billion).