Know All About SEBI's Proposal To Boost Business For Non-Convertible Securities
Among the proposals suggested are removing the need to show the promoters' permanent account numbers in the offer document.
India's market regulator released new suggestions on Thursday to boost 'ease of doing business' for non-convertible securities.
One proposal suggests removing the need to show the promoters' permanent account numbers, or PAN, in the offer document. The Securities and Exchange Board of India says this information is already in the stock exchange's database, so it's not necessary to repeat it. But it's still important for investors to know about the promoters' business and financial activities, so SEBI plans to keep that in the offer document.
SEBI further suggested matching the timeframe for sharing important operational and financial details with the timing for sharing financial information in the offer document.
This means that companies would need to provide consistent and timely information about their operations and finances, making it easier for investors to understand their overall performance before making investment decisions.
To make it easier for investors to access information without needing frequent updates, the market regulator has proposed that details about the company's branches or units, as of the offer document's date, can be shared using a static QR code and web link.
Additionally, SEBI recommended that companies provide the branch or unit details to the debenture trustee. This information should also be available for inspection, as per the specified regulations.
The regulator suggested adding a checklist item to the "Security and Covenant Monitoring System." This item would ensure that companies not only give branch or unit information to the debenture trustee but also get confirmation from them about its accuracy and availability. Disclosure about project costs and means of financing has also been proposed.
The proposal also clarified that entities listing non-convertible securities should provide a certificate to the stock exchange confirming fulfilment of payment obligations within one working day of the payment becoming due.
The suggestions are open for public comments until May 30.
