Process of ‘Public Issue’ of Securities under various SEBI Regulations streamlined

SEBI has issued a circular on August 16, 2018 (“Circular”) in order to streamline the process of public issue of debt securities, Non-Convertible Redeemable Preference Shares (“NCRPS”) and Securitized Debt Instruments (“SDI”) under SEBI (Issue and Listing of Debt Securities) Regulations, 2008, SEBI (Issue and Listing of NCRDS) Regulations, 2013, SEBI (Public Offer and Listing of SDI) Regulations, 2008 and SEBI (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015.

The streamlined process, as laid down in the Circular is as follows:

  • All the investors applying in a public issue shall use only Application Supported by Blocked Amount facility for making payment (i.e. writing their bank account numbers and authorising the banks to make payment in case of allotment by signing the application forms) and shall submit a completed form to Self-Certified Syndicate Banks (“SCSBs”), with whom the bank account to be blocked is maintained or any of the approved intermediaries.
  • The SCSBs or the approved intermediaries are required to give an acknowledgement to the investors after accepting the application form. After accepting the forms, the SCSBs are also required to capture and upload details of the form in the electronic bidding system and begin blocking of funds available in the bank account specified in the form.
  • The Stock exchange shall validate the electronic bid details uploaded by the SCSBs or approved intermediaries with depository’s records and bring the inconsistencies to the notice of SCSBs or intermediaries concerned, for rectification and re-submission within the specified time specified.
  • The time taken for listing after the closure of the issue has been reduced to 6 working days as against the previous requirement of 12 working days.