Consultation Paper on Review of NCDs along with Warrants under QIP

SEBI issued a consultation paper on December 2, 2020 regarding issue of non-convertible debentures (‘NCDs’) along with warrants as a staple product and as a segregated product, offered through qualified institutions placement (‘QIP’) under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (‘ICDR Regulations’). Through the consultation paper, SEBI has proposed to discontinue segregated offering of NCDs along with warrants to QIBs through the QIP route. Further, stapled offering of NCDs along with warrants to QIBs may be retained under the ICDR Regulations, with the ability to segregate the instruments after the issuance/allotment. SEBI has also proposed to allow issuance of ‘naked warrants’ to QIBs through QIP mechanism with guidelines on upfront payment, pricing and tenure of warrants.

Published In:Inter Alia - Quarterly Edition - December 2020 [ English Chinese japanese ]
Date: December 31, 2020