SEBI makes listing of debt securities simpler

(12/5/09 SEBI news) - SEBI has simplified the issuance and listing of non-convertible debt securities by companies, as part of its attempts to develop the country’s corporate bond markets. Accordingly, a company whose shares are listed and is seeking listing of its debt securities, needs to provide only “minimal incremental disclosures” for the debt issuance. Such disclosures, according to Sebi, are sufficient, as a large amount of information is already in the public domain.

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Even for companies whose shares are not listed on the stock exchange, but are looking to list their debt securities, the disclosures for the latter need not be as comprehensive as those required for an equity listing, the regulator said.

This move is aimed to enable debt issues for a more feasible fund-raising route, as the listing compliance for shares is far more complex and expensive.

SEBI restricts early exit from close-ended mutual funds

The Securities and Exchange Board of India (SEBI) on Thursday said investors won't be allowed to exit from close-ended mutual fund schemes before maturity and asked fund houses to list them on stock exchanges.

The market regulator also said all such funds must invest in instruments in line with their maturity profile.

"For all close-ended schemes, no early exits will be provided by the funds," SEBI Chairman C B Bhave told a media briefing following a board meeting earlier in the day. "All schemes will have to be listed on the stock exchange," he added.

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The decision comes in wake of a liquidity crisis faced by the industry two months ago as investors pulled out from fixed income funds fearing their credit quality.

More than Rs 90,000 crore flowed out of debt funds during the period, creating a liquidity crunch for the Rs 4 trillion industry and forcing the central bank to offer money through a special money market operation to ease the pressure.

The regulator also extended the validity period of initial public offers to one year from three months now.

source - www.economictimes.com