It would also consider reducing time limits, introducing automatic routing of the complaint to the relevant regulated entities and self-escalation of complaints in the event of non-compliance with the time limits prescribed by the regulated entity.
Among other things, Sebi, in a statement after the board meeting, said it would also provide two levels of review. The first review would be carried out by the designated body if the investor is not satisfied with the resolution provided by the relevant regulated entity.
The second review would be done by Sebi if the investor is still not satisfied after the first review.
Linking SCORES to the Online Dispute Resolution (ODR) platform would provide an additional option for investors of all regulated entities.
A new portal for gathering market intelligence will also be set up, Sebi said.
To facilitate transparency in price discovery, Sebi has decided to modify the regulations relating to non-convertible debt securities (NCD). The revised standards will come into effect from January 1, 2024.
The Board approved amendments to the Sebi (Registration and Disclosure Requirements) Regulations 2015 requiring listed entities with listed CRS outstanding (as of December 31, 2023) to list their subsequent issuances of CRS on an exchange.
Certain issues, including capital gains tax debt securities, will be exempt from the revised framework.
“Non-convertible securities issued pursuant to an agreement between the listed entity of such securities and multilateral institutions, provided that such non-convertible debt securities are blocked and held to maturity and, therefore, are free of charge.” the statement said.
According to Sebi, if an entity with listed debt securities has unlisted NTMs outstanding as of December 31, 2023, the entity will have the option to list them, but it would not be mandatory to do so.
Under certain conditions, entities will be permitted to write off their debt securities.
“Unlike equities, where a majority threshold approval is sufficient for delisting approval, 100% approval of debt security holders is required for debt delisting. Indeed, unlike stocks which are a perpetual instrument, listed debt securities have a limited term to maturity,” Sebi said.
Entities with publicly traded debt securities placed privately and whose number of debt securities holders is less than 200 will be eligible to have their debt securities delisted under this framework, he added.
As part of efforts to stimulate the corporate bond market, Sebi has decided to allow direct client participation in the Limited Purpose Clearing Corporation (LPCC).
“Because the timely availability of funds and securities is critical in a repo market, direct participation by borrowers and lenders can broaden the market.
“Accordingly, the Board of Directors has approved the proposal to further facilitate the participation of entities wishing to participate directly (and not through a clearing member) in corporate bond repurchase transactions. of the LPCC,” the statement said.
The launch of LPCC should facilitate active trading, especially by market makers, by allowing them to fund their bond inventory via an active repo market. This in turn should improve the liquidity of the corporate bond market, he added.
Meanwhile, the board also approved Sebi’s annual report for 2022-23.
