Sebi tightens disclosure norms for debenture issues

Mumbai: Tightening the disclosure norms, market regulator Sebi on 6 August made it mandatory for companies to provide all information regarding debentures to the investors and general public.

In a communication to the stock exchanges and debenture trustees, Sebi said all information regarding revision of ratings assigned to debentures should be made public through press releases.

The information to be disseminated to the public should include default by the issuer company to pay interest rate or redemption amount.

In addition, the debenture issuer will also be required to inform the investors about their failure to follow the norms pertaining to creation rights on asset.

The regulator also asked to place the information regarding debentures on their websites.

These requirements, it clarified, would be in addition to the specification prescribed under the Sebi (Debenture Trustees) Regulation 1993 and guidelines relating to the listing agreement for debentures issued through public/rights issue and those placed privately.

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