Revised framework for issue and listing of non-convertible securities
February 24, 2023
In this alert, we set out the impact and other important changes based on Securities and Exchange Board of India circular dated October 10, 2022 (“EBP Circular 2022”) replacing the erstwhile Chapter VI (Electronic Book Provider Platform) of Operational Circular for Issue and Listing of Non-convertible Securities. The provisions contained in the EBP Circular 2022 came into effect from January 1, 2023. This circular seeks to address issues raised by several market participants including inter alia applicability of the electronic book building mechanism for debt issuances below prescribed thresholds, investments made by anchor investors, investments through arrangers (both proprietary and otherwise), the bidding process, allotment and settlement process (where the coupon may or may not be specified by the issuer) and general technological issues ensuring that allocations are made to the ‘best bids’ placed pursuant to an electronic bidding mechanism.