December 12, 2022
Summary of the notification issued by SEBI on 09/12/2022
SEBI issues clarification w.r.t Scheme(s) of Arrangement by entities who have listed their Non-convertible Debt securities (NCDs)/ Non-convertible Redeemable Preference shares (NCRPS)
SEBI has clarfiied that the provisions of its circular dated 17/11/2022, notifying the requirements to be adhered to by the entities which have listed its NCDs/NCS, shall not apply to a Scheme of Arrangement which solely provides for an arrangement between a debt listed entity and its unlisted wholly owned subsidiary. However, such debt listed entity shall file the draft Scheme of Arrangement with Stock Exchange(s) for the purpose of disclosure and the Stock Exchange(s) shall disseminate the scheme documents on their websites.