No Security Deposit to be paid to the Stock Exchanges prior to Listing of Securities

The Securities and Exchange Board of India (“SEBI”) has released (a) SEBI (Issue and Listing of Debt Securities) (Amendment) Regulations, 2018; (b) SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) (Amendment) Regulations, 2018; and (c) SEBI (Issue and Listing of Securitized Debt Instruments and Security Receipts) (Second Amendment) Regulations, 2018 (collectively the “Amendment Notifications”).

By virtue of these Amendment Notifications, the issuer is no longer required to give a security deposit of one (1) % of the value of securities to the stock exchange before getting ‘debt securities’, ‘non-convertible redeemable preference shares’, ‘securitized debt instruments’ and ‘security receipts’ (as applicable) listed on such stock exchange.