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

Reduction in denomination of debt securities and non-convertible redeemable preference shares

03-Jul-2024 | SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/94

SEBI has issued a circular on Reduction in denomination of debt securities and non-convertible redeemable preference shares. By virtue of the circular, Chapter V (Denomination of issuance and trading of Non-convertible Securities) of the Master Circular for issue and listing of Nonconvertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper is amended. Key highlights of amendments:. 1. Clause 1.1 of Chapter V is modified and be read as ''The face value of each debt security or non-convertible redeemable preference share issued on private placement basis shall be Rs. One lakh except as provided in Clause 1.3 below.'' 2. Clause 1.3 is inserted specifying the conditions to be followed by the Issuer for issue debt security or non-convertible redeemable preference share on private placement basis at a face value of Rs. Ten Thousand. 3. Clause 2.3 of Chapter V of the Master Circular is modified - Trading lot of listed debt security issued on private placement basis, nonconvertible redeemable preference share issued on private placement basis, listed security mentioned under Chapter V of SEBI (Issue and Listing of Non Convertible Securities) Regulations, 2021 and Chapter XIII of the Master circular dated May 22, 2024, traded on a Stock Exchange or OTC basis shall always be equal to face value. Refer the attachment for more information.

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