CAIRR Update November 22, 2019

November 22, 2019

Summary of Circular issued by SEBI on 21/11/2019 

1. Disclosure of default in payment of interest/installments on Loans from Banks and Financial Institutions by Listed Entities with effect from 1st January, 2020:

SEBI mandates the disclosure by entities that have listed specified securities (equity and convertible securities), Non-Convertible Debt (NCDs), Non-Convertible Redeemable Preference Shares (NCRPS), in the specified formats, in accordance with the below time frames –
Any ‘default’, as defined in the said circular,-

• in case of loans including revolving facilities like cash credit, from banks / financial institutions, continuing beyond 30 days, shall be disclosed within 24 hours from the 30th day of such default
• in case of unlisted debt securities i.e. NCDs and NCRPS, the disclosure shall be made within 24 hours from the occurrence of the default

In addition to the disclosure made for each instance of default, the listed entities should also make quarterly disclosures, within 7 days from the end of each quarter, if on the last date of any quarter, there is any:

• loan including revolving facilities like cash credit from banks / financial institutions where the default continues beyond 30 days (or)
• outstanding debt security under default.
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