3 weeks ago

Sebi Extends Disclosure Timelines, Revises Municipal Debt Security Rules

Sebi is the group that makes the rules for India's stock market.

Cities in India can borrow money from people by selling something called municipal bonds.

When they do this, they must tell investors how their money is being managed.

Sebi has now given cities more time to share these reports.

In the past, cities had 45 days to share half-yearly updates; now they have 60 days.

For yearly reports, they now get 90 days instead of 60 days.

Sebi said cities found it hard to collect all the information quickly and coordinate between departments.

Sebi also made new rules for bonds that are sold privately to certain buyers.

These bonds must be sold in fixed amounts, like Rs 10,000 or Rs 1 lakh.

There is also a new special bank account system to make sure money is saved up to pay investors back.

Key facts

Regulator: Securities and Exchange Board of India (Sebi)
Announcement: Circular issued Tuesday, August 11, from New Delhi
Half-yearly results deadline: 60 days (previously 45 days)
Annual audited results deadline: 90 days (previously 60 days)
Face value for private placements: Rs 1 lakh or Rs 10,000
Trading lot: Equal to the face value of the security
Scope of face value rules: Only privately placed securities, not public issues
Interest payment account requirement: Amount equal to one year's interest obligation maintained throughout the security tenure

thehansindia.com · 3 weeks ago

freepressjournal.in · 3 weeks ago