SEBI Proposes Limited Relaxation for Non-Convertible Debt Securities

SEBI plans to relax the requirement for issuers of non-convertible debt securities to send hard copies of financial documents. This move aligns with the Ministry of Corporate Affairs' earlier decision, enabling electronic disclosures and minimizing penal action for non-compliance. Stakeholder feedback is invited until May 12.

The Securities and Exchange Board of India (SEBI) has put forth a proposal to relax its guidelines for issuers of listed non-convertible debt securities regarding the distribution of hard copies of financial documents to investors.

In alignment with a recent decision by the Ministry of Corporate Affairs, SEBI suggests an exemption from Regulation 58(1)(b), which stipulates that holders of such securities who haven't registered their emails must receive physical copies of financial reports and related documents. This proposal is set to be effective from October 1, 2024, extending until a yet-to-be-specified date in 2025, followed by further relaxations dependent on disclosure via advertisements until September 30, 2025.

SEBI emphasizes that companies will not face penalties for not sending physical documents within this period. Public feedback on this proposal is being requested until May 12, aiming to gauge reactions and refine the plan in line with industry sentiments.

(With inputs from agencies.)