The Securities and Exchange Board of India (SEBI) has implemented new rules aimed at streamlining the disclosure framework for issuers of debt securities. The move, announced in a notification issued on Thursday, is expected to enhance ease of doing business for issuers and reduce the burden of multiple filings.
Under the new regulations, SEBI has introduced the concept of a General Information Document (GID) and a Key Information Document (KID). The GID, containing specified information and disclosures, will be filed with the stock exchanges at the time of the initial issuance and will remain valid for one year.
For subsequent private placements of non-convertible securities or commercial papers within the GID’s validity period, issuers will only need to file a KID that includes any material changes since the GID filing. Financial information included in the GID will need to be updated if it is more than six months old.
SEBI has initially made the compliance with the new framework optional until March 31, 2024, following a “comply or explain” basis. However, it will become mandatory after the specified date.
The introduction of the GID and KID framework is expected to simplify the filing process and reduce the administrative burden on issuers, promoting a more efficient and streamlined approach to disclosure requirements for debt securities.
SEBI’s latest initiative demonstrates its ongoing commitment to fostering a conducive regulatory environment and facilitating a seamless experience for market participants in India’s debt securities market.
About SEBI: The Securities and Exchange Board of India (SEBI) is the regulatory body responsible for overseeing the securities markets in India. It aims to protect the interests of investors and promote the development and regulation of the securities market through effective regulation and enforcement.
