3 weeks ago

SEBI Reviews CAS Trading, Proposes Flexible Debt Maturity Norms

SEBI Reviews CAS Trading, Proposes Flexible Debt Maturity Norms
SEBI reviews CAS trading activity, proposes easing debt maturity norms for issuers · thehansindia.com

In India, a group called SEBI watches over the stock market to make sure it is fair.

The stock market has a new way of setting the price of shares at the end of the day, called the Closing Auction Session.

SEBI is checking some trades from the first week of this new system because it is worried that a few small trades might have unfairly moved the closing prices of some shares.

SEBI also has a separate plan about money that companies borrow and must pay back.

Right now, companies have limits on how many different loans they can have due in one year.

SEBI wants to let companies have more of these loans due in a single year, so they do not have to pay back too much money all at once.

This is meant to help companies, especially non-banking financial companies, manage their money better and avoid big repayment crunches.

The plan would also help very large companies spread out their repayments more evenly.

People can tell SEBI what they think about this plan until August 31.

Key facts

Regulator
Securities and Exchange Board of India (SEBI)
Review target
Closing Auction Session (CAS) trading activity from its first week
Current ISIN maturity limit
14 per financial year (privately placed debt)
Proposed ISIN maturity limit
17 per financial year
Plain vanilla debt ISINs
Up to 12 (currently 9)
Comment deadline
August 31
Large issuer flexibility
One additional ISIN per Rs 3,000 crore of outstanding debt beyond Rs 15,000 crore

Sources

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