Once Listed, Always Listed – SEBI Amends Laws for Listing of Debt Securities for all Equity Listed Entities

The Securities and Exchange Board of India (SEBI) vide its notification dated 19 September 2023 has inserted regulation 62A to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations), hereinafter referred to as the “Amendment”.

By way of the Amendment, the SEBI has mandated that a listed entity, whose non-convertible debt securities (NCS) are listed on the stock exchange(s), shall list all its NCS, proposed to be issued on or after 1 January 2024 (Cut-off Date). Additionally, a listed entity, which has made an issue of unlisted NCS on or before 31 December 2023, which are outstanding on the Cut-off Date, may list such securities, on the relevant stock exchange(s).

However, a listed entity that proposes to list the NCS on the stock exchange(s) on or after the Cut-off Date, shall list all its outstanding unlisted NCS previously issued on or after the Cut-off date, on the stock exchange(s), within 3 (three) months from the date of listing of the NCS proposed to be listed.

The following is a snapshot of the requirements under the Amendment vis-à-vis listing of NCS:

*NCS issued, inter alia, pursuant to an agreement entered into between the listed entity of NCS and multilateral institutions are outside the purview of this Amendment, subject to the following conditions:

• Manisha shroff (Partner), Saranya Karanath (Associate), Chhavishree Somani (Associate)

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