In another move towards strengthening the corporate debt market, the Securities Exchange Board of India (Sebi) has issued a draft proposal to further simplify the listing agreement for the debt securities. The new draft listing agreement for debt securities prepared in consultation with stock exchanges, including BSE and NSE, is one single document replacing the existing separate listing agreements for debentures issued by a public issue and those which are privately placed.
In the proposed draft on the simplified listing agreement for the debt securities, Sebi said, ?The disclosures in the draft listing agreement are based on the principle that if an issuer has his equity already listed, such an issuer only makes minimal incremental disclosures specific to its debt issuance. Issuers who have only debt securities listed and not equity, reasonably elaborate disclosures, fewer than equity though are prescribed?, the draft proposal said.
It may be mentioned here that Sebi, in the current year, has notified the issue and listing regulations for debt securities aimed at simplifying disclosure requirements for issuance of debt securities. The new draft proposal aims at further simplification of the debt listing agreement and continuous disclosure norms. The regulator has sought public opinion till August 25, 2008. According to the draft proposal, the listing agreement has two parts. The part A contains eight clauses which are applicable where equity shares of the issuer are already listed on the exchange and continues to comply with the listing agreement for equity.