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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Clarification w.r.t. issuance and listing of perpetual debt instruments, perpetual non-cumulative preference shares and similar instruments under Chapter V of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021

08-Feb-2023 | SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/027

SEBI has modified the applicability of the provisions of Chapter V of the NCS Regulations, 2021.

Now, the following categories shall comply with the provisions for issuance and listing as specified in Chapter V-
a. The issuer permitted by RBI to issue such instruments;
b. The instruments form part of non-equity regulatory capital;
c. The instruments are perpetual debt instruments, perpetual non-cumulative preference shares, or instruments of similar nature;
d. The instruments which contain discretion with the issuer/ RBI for events.

Previously, Chapter V was applicable to the issuance and listing of:
(a) debt securities and non-convertible redeemable preference shares by an issuer by way of public issuance;
(b) non-convertible securities by an issuer on a private placement basis.

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