SEBI issued a clarification regarding Regulation 62A, which outlines compliance obligations when a debt-listed entity takes on unlisted Non-Convertible Debenture (NCD) obligations through corporate restructuring.
Clarification on Compliance for Transferred Unlisted NCD Obligations
The Securities and Exchange Board of India (SEBI) has issued a crucial clarification on Regulation 62A, specifically addressing compliance requirements for debt-listed entities that assume outstanding unlisted Non-Convertible Debenture (NCD) obligations during corporate restructuring.
This clarification highlights the need for strict adherence to compliance norms to maintain market integrity and investor confidence. The obligations of entities assuming such responsibilities are stipulated under SEBI's existing regulatory framework, ensuring that all requisite disclosures and procedural standards are upheld.
Professionals managing corporate restructurings or advising on debt instruments must take note of this clarification to ensure compliance with the updated requirements, thereby minimizing legal risks and reinforcing corporate governance standards.
Citations
- SEBI Clarification No. DEF (2026) SEBI Report 321
