SEBI relaxes private placement norms, allows up to 17 ISINs to mature in a year
The revised framework includes separate limits for plain vanilla debt, structured debt and specified bonds, with some securities excluded from calculations
The Securities and Exchange Board of India (SEBI) has relaxed private placement norms for debt securities, allowing up to 17 International Securities Identification Numbers (ISINs) to mature in a single financial year. An ISIN is a unique 12-character alphanumeric code used globally to identify specific securities. Previously, issuers were allowed only six ISINs for capital gains tax debt securities under section 54EC of the Income Tax Act, 1961.
The revised norms permit 12 ISINs for plain vanilla debt securities, while a further five ISINs can be issued for structured debt securities, market-linked debt securities, floating rate bonds, zero coupon bonds, and debt capital instruments (Tier II bonds). Existing ISINs will be grandfathered, and additional ISINs can be permitted if the total outstanding amount across 12 ISINs reaches Rs 15,000 crore, with an additional ISIN allowed for every extra Rs 3,000 crore. The provisions of this circular will come into effect immediately.
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