The Securities Exchange Board of India on 21st November 2019, has issued an circular to listed entities to disclose any delay or default in payment of interest/principal on debt securities such as Non-Convertible Debt (NCDs), Non-Convertible Redeemable Preference Shares(NCRPS) etc on their part to the stock exchange as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Listed entities shall make disclosure if any default in loans, including evolving facilities like cash credit, from banks /financial institutions which continues beyond 30 days. Such disclosure shall be made promptly, but not later than 24 hours from the 30th day of such default.
In case of unlisted debt securities such as Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), the disclosure shall be made within 24 hours from the occurrence of the default.
Further the circular has come out with format for disclosures by the listed companies. It also mandates another disclosure under C2 that shall be completed every quarter. The disclosure under C2 shall be made within 7 days from the end of each quarter.
The Disclosures as applicable in terms of this Circular shall be effective from 1st January 2020.
Click here to read the Notification.
