Sebi Proposes Exempting Non-Convertible Securities from Trading Window Restrictions

Sebi has proposed exemptions for non-convertible securities from trading window restrictions to simplify transactions for market participants. These securities, including non-convertible debentures and perpetual debt instruments, are pre-decided, regulated, and will be subject to necessary disclosures. The public has until October 17 to comment on the proposal.

In a bid to simplify market transactions, the Securities and Exchange Board of India (Sebi) on Thursday proposed exempting non-convertible securities (NCS) from trading window restrictions. This move aims to ease the process for market participants engaged in transactions involving non-convertible debentures, non-convertible redeemable preference shares, and perpetual debt instruments.

Sebi's PIT (Prohibition of Insider Trading) norms currently restrict trading for individuals with access to Unpublished Price Sensitive Information (UPSI) by closing trading windows. However, certain pre-planned transactions like rights issues and conversions of warrants are already exempt from these restrictions.

The new proposal, outlined in Sebi's consultation paper, suggests extending these exemptions to NCS transactions, which are pre-decided, regulated, and subject to necessary disclosures. Public comments on the proposal will be accepted until October 17.

(With inputs from agencies.)