INTERVIEW QUESTIONS INDIAN FINANCIAL SYSTEM REGULATORY INSTITUTIONS DETAILS

Question: State the SEBI guidelines for debentures issued for public subscription?

Answer: •Compulsory credit rating will be required if conversion is made for FCDs after 18 months.
•Premium amount on conversion, the conversion period, in stages, if any, shall be pre-determined and stated in the prospectus.
•The interest rate for above debentures will be freely determinable by the issuer.
•Issue of debenture with maturity of 18 months or less are exempt from the requirement of appointing Debenture Trustees or creating a Debenture Redemption Reserve (DRR).
•The trust deed shall be executed within six months of the closure of the issue.
•Any conversion in part or whole of the debenture will be optional at the hands of the debenture holder, if the conversion takes place at or after 18 months from the date of allotment, but before 36 months.
•In case of NCDs/ PCDs credit rating is compulsory where maturity exceeds 18 months.
•Premium amount at the time of conversion for the PCD, redemption amount, period of maturity, yield on redemption for the PCDs/NCDs shall be indicated in the prospectus.

•Compulsory credit rating will be required if conversion is made for FCDs after 18 months.
•Premium amount on conversion, the conversion period, in stages, if any, shall be pre-determined and stated in the prospectus.
•The interest rate for above debentures will be freely determinable by the issuer.
•Issue of debenture with maturity of 18 months or less are exempt from the requirement of appointing Debenture Trustees or creating a Debenture Redemption Reserve (DRR).
•The trust deed shall be executed within six months of the closure of the issue.
•Any conversion in part or whole of the debenture will be optional at the hands of the debenture holder, if the conversion takes place at or after 18 months from the date of allotment, but before 36 months.
•In case of NCDs/ PCDs credit rating is compulsory where maturity exceeds 18 months.
•Premium amount at the time of conversion for the PCD, redemption amount, period of maturity, yield on redemption for the PCDs/NCDs shall be indicated in the prospectus. Source: CoolInterview.com

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