The Securities and Exchange Board of India in its board meeting on 30th September 2022, has decided to Introduce Regulatory Framework to facilitate Online Bond Platform Providers and reduction in the face value of listed privately placed debt securities.
The Board approved the following proposals:
1. To register Online Bond Platform Providers with SEBI as Stock Brokers under the debt segment of the Stock Exchanges;
2. To issue a procedural circular detailing the specifics and mechanics of the operations of the online bond platform providers; and
3. To reduce the face value of listed privately placed debt securities.
The Board approved the proposal to mandate the issuers coming out with IPO, to make disclosure of Key Performance Indicators (KPIs) and price per share of issuer based on past transactions and past fund raising done by the issuer from the investors under ‘Basis for Issue Price’ section of the offer document, and in Price Band Advertisement.
Further the Board approved amendment to SEBI (Mutual Funds) Regulations, 1996 to facilitate faster payout of redemption and dividend to unitholders by AMCs from existing 10 working days and 15 days respectively to such period as may be specified by SEBI from time to time, proposed as 3 working days and 7 working days.
The Board approved the proposal to introduce pre-filing of offer document as an optional alternative mechanism for the purpose of Initial Public Offer on the Main Board of Stock Exchanges. Pre-filing mechanism allows issuers to carry out limited interaction with without having to make any sensitive information public. Further the document which incorporates SEBI’s initial observations would be available to investors for a period of at least 21 days, thereby, assisting them better in their investment decision making process. The existing mechanism of processing offer document shall continue in addition to this alternative mechanism of pre-filing.
