SEBI rolls out Consultation Paper on framework for Schemes of Arrangement for entities that have listed only debt securities/ Non-convertible redeemable preference shares; comments invited by 19-06-2022

The Securities and Exchange Board of India has, in a Report, rolled out a Consultation Paper on Introducing framework for Schemes of Arrangement for entities that have listed only debt securities/ non-convertible  redeemable  preference shares (“NCRPS”) for public comments.

Key Highlights of the Proposal :

• To bring about a regulatory framework providing for schemes of arrangement for only debt listed entities in the Listing Regulation
• Listed entity must file the draft schemes of arrangement with Stock Exchange(s) for obtaining No-Objection Letter (NOL)
• Stock  Exchange(s) must forward the draft scheme of arrangement received from the listed entity along with No-Objection to SEBI
• Requirements and procedure of filing schemes with Stock Exchange(s) along with processing of the same by SEBI are detailed
• The validity of the NOL will be six months from the date of issuance. Upon receipt of the NOL from the Stock Exchange(s), the listed entity must ensure that the same is submitted immediately, but not later than 2 working days from such receipt, to the Court or Tribunal to avoid any delay.

SEBI has invited public comments / views on the matter in the Consultation Paper sent by 19th June, 2022, by email to pradeepr@sebi.gov.in, chaitalik@sebi.gov.in or kirand@sebi.gov.in with subject as  “Comments  on Consultation paper on introducing framework for Schemes of Arrangement for entities that have listed only debt securities/ NCRPS” as per the format given below:

For a detailed read of, please refer to the document attached or the hyperlinked source given below.

Source: Securities and Exchange Board of India