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SEBI Proposes Relaxing Disclosure Requirements for Non-Convertible Securities

SEBI has issued a Consultation Paper aiming to streamline Non-Convertible Securities transactions.

The key proposals are:

  1. Eliminating the need to disclose promoters’ PAN and personal addresses in offer documents.
  2. Relaxing the obligation to provide specific business and commercial details for immovable property acquisitions in offer documents.
  3. Additionally, the regulator proposes that details of the issuer’s branches or units at the offer document’s date be provided through a static QR code and web link. These details should also be made available to the debenture trustee and for inspection.

The current regulatory framework, as per SEBI’s (Issue and Listing of Non-Convertible Securities) rules or NCS norms, mandates full disclosure of promoters’ profiles, including PAN and personal addresses as well as disclosure of branch/unit details in offer documents. SEBI also suggests aligning the disclosure period for key operational and financial parameters with the period for financial information disclosure in offer documents.

SEBI had invited public comments on these proposals until May 30.