Review of framework for public issuance of Convertible Securities- (Securities and Exchange Board of India) (01 Dec 2015)

Capital Market

The Securities and Exchange Board of India has released a discussion paper reviewing the framework for public issuance of convertible securities. The review was facilitated by a demand by investment banks and other institutions dealing in similar commodities to revive issuances of convertible securities by existing listed entities. One of the several suggestions mooted is provision for an extended tenure for convertible securities of five years. Also proposed is treatment of optionally convertible debentures and preference shares as debt, with ensuing regulation applying to the same. SEBI is receiving comments on the paper till 23 December 2015.

Tags : CONVERTIBLE SECURITIES REVIEW DEBT TERM