{"id":283582,"date":"2023-02-10T13:00:48","date_gmt":"2023-02-10T07:30:48","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=283582"},"modified":"2023-02-10T11:47:31","modified_gmt":"2023-02-10T06:17:31","slug":"sebi-clarified-on-issuance-and-listing-of-perpetual-debt-instruments-perpetual-non-cumulative-preference-shares-and-similar-instruments-under-chapter-v-of-sebi-issue-and-listing-of-non-convertible-sec","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/02\/10\/sebi-clarified-on-issuance-and-listing-of-perpetual-debt-instruments-perpetual-non-cumulative-preference-shares-and-similar-instruments-under-chapter-v-of-sebi-issue-and-listing-of-non-convertible-sec\/","title":{"rendered":"SEBI issues list of securities which need to comply with provisions of Chapter of NCS Regulations, 2021"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 8-2-2023, the Securities and Exchange Board of India (&#8216;SEBI&#8217;) clarified on the issuance and listing of perpetual debt instruments, perpetual non-cumulative preference shares and similar instruments under Chapter V of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-9000893412\">SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021<\/a> (&#8216;NCS&#8217;). This circular came into effect on 8-2-2023.<\/p>\n<p><b>Key Points:<\/b><\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt;\">1. The securities, having the following characteristics, are required to comply with the provisions for issuance and listing as specified under Chapter V of the NCS Regulations:<\/p>\n<p style=\"margin-left: 54pt; text-indent: -18pt;\">&#8226; the issuer is permitted by RBI to issue instruments<\/p>\n<p style=\"margin-left: 54pt; text-indent: -18pt;\">&#8226; the instruments form a part of non-equity regulatory capital<\/p>\n<p style=\"margin-left: 54pt; text-indent: -18pt;\">&#8226; the instruments are perpetual debt instruments, perpetual non-cumulative preference shares or instruments of similar nature<\/p>\n<p style=\"margin-left: 54pt; text-indent: -18pt;\">&#8226; instruments contain a discretion with the issuer\/ RBI for events including but not restricted to all or any of the following events:<\/p>\n<p style=\"margin-left: 72pt; text-indent: -18pt;\">i) conversion into equity<\/p>\n<p style=\"margin-left: 72pt; text-indent: -18pt;\">ii) write off of interest\/ principal<\/p>\n<p style=\"margin-left: 72pt; text-indent: -18pt;\">iii) skipping\/ delaying payment of interest\/principal<\/p>\n<p style=\"margin-left: 72pt; text-indent: -18pt;\">iv) making an early recall<\/p>\n<p style=\"margin-left: 72pt; text-indent: -18pt;\">v) changing any terms of issue of the instrument<\/p>\n<p style=\"margin-left: 36pt; text-indent: -18pt; margin-bottom: 3%;\">2. The NCS Regulations provide the framework for issuance of non-convertible securities and Chapter V of these regulations prescribes the conditions for issuance and listing of perpetual debt instruments, perpetual non-cumulative preference shares and similar instruments.<\/p>\n<hr\/>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Kriti Kumar, Editorial Assistant has reported this brief.<\/span><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>On 8-2-2023, the Securities and Exchange Board of India (&#8216;SEBI&#8217;) clarified on the issuance and listing of perpetual debt instruments, perpetual non-cumulative <\/p>\n","protected":false},"author":67011,"featured_media":278871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[55120,2563,16791],"class_list":["post-283582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations","tag-ncs-regulations","tag-SEBI","tag-securities-and-exchange-board-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEBI issues list of securities which need to comply with provisions of Chapter of NCS Regulations, 2021 | SCC Times<\/title>\n<meta name=\"description\" content=\"On 8-2-2023, the Securities and Exchange Board of India (\u2018SEBI\u2019) clarified on the issuance and listing of perpetual debt instruments\" 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On 1-02-2023, the Union Finance Minister, Nirmala Sitharaman announced the Union Budget 2023. The budget is particularly focused upon inclusive development, especially covering the youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes. 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These rules apply to every manufacturer, producer refurbisher, dismantler and recycler involved in manufacture, sale, transfer, purchase, refurbishing, dismantling, recycling and processing of e-waste or electrical and\u2026","rel":"","context":"In &quot;Legal RoundUp&quot;","block_context":{"text":"Legal RoundUp","link":"https:\/\/www.scconline.com\/blog\/post\/category\/columns-for-roundup\/"},"img":{"alt_text":"Legislation Monthly Roundup","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-80.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":277996,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/11\/24\/sebi-issues-circular-on-issue-of-green-debt-securities-by-an-issuer-under-sebi-issue-and-listing-of-municipal-debt-securities-regulations-2015\/","url_meta":{"origin":283582,"position":5},"title":"SEBI issues circular on Issue of Green Debt Securities by an issuer under SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015","author":"Bhumika Indulia","date":"November 24, 2022","format":false,"excerpt":"\u00a0 \u00a0 On 24-11-2022, SEBI has issued a circular on Issue of Green Debt Securities by an issuer under SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015. 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