Sebi readies new listing regulations to safeguard investors

Listed entities would have to co-operate with intermediaries registered with Sebi such as debenture trustees and credit rating agencies

Bringing in comprehensive norms for various listed securities, Sebi has finalised detailed listing regulations aimed at ensuring better compliance levels and strengthening safeguards for investors.

The new regulations have been put in place after taking into consideration the need for having a framework to consolidate listing obligations and disclosure requirements for listed entities across all these securities at one place.

"This regulation would consolidate and streamline the provisions of existing listing agreements thereby ensuring better enforceability," Securities and Exchange Board of India said in a statement after the meeting where the framework was approved.

At present, there are separate listing agreements for different segments of the capital market.

The norms have been prepared after extensive consultations. A discussion paper on the matter was floated in May this year.

Overarching principles would be incorporated in the provisions of listing regulations to ensure that they serve as guidelines for compliance in case there is any ambiguity.

The enabling provision for annual information memorandum would be retained in the new regulations.

Under the revamped framework, listed entities would have to co-operate with intermediaries registered with Sebi such as debenture trustees and credit rating agencies.

Among others, listed entities have to compulsorily appoint Company Secretary as compliance officer except for units of mutual funds listed on stock exchanges.

Within six months of notifying these regulations, entities would have to "execute a shortened version of listing agreement". Such a mechanism has been put in place to ensure since listing agreement is a contractual pact between the stock exchange and listed entity.

There would be converged provisions for specified securities (equity segment) listed on Main Board and SME platform with necessary carve-outs for SMEs.

For redressal of investor grievances, listed entities would have to mandatorily register with SCORES. All filings by listed entities have to be made electronically.

The new norms would be applicable for equity, non-convertible debt securities, non-convertible redeemable preference shares, Indian Depository Receipts, securitised debt instruments and units issued by mutual fund schemes, among others.

The listing regulations have been divided into three parts -- substantive provisions incorporated in the main body of regulations, procedural requirements in the form of schedules and various formats/forms of disclosures to be specified by Sebi through circulars.