Sebi does away with security deposits

NEW DELHI: To ease the cost and compliance burden on the issuer of securities, markets regulator Sebi has done away with the requirement of 1 in step with cent safety deposits with exchanges for public issuance of debt securities.


The resolution comes after the board of Sebi licensed a suggestion on this regard in its assembly last month.


Currently, 1 in step with cent of the volume offered for subscription to the general public is needed to be deposited with the stock exchanges in order that complaints in the case of refund of application money, allotment of securities and dispatch of certificates among others may also be resolved speedily.


In three separate notifications dated October nine, Sebi has done away with the requirement of 1 in step with cent safety deposit within the circumstances of public problems with debt securities, non-convertible redeemable choice stocks and securitised debt tools.


The move is predicted to ease the cost and compliance burden on the issuers.
Sebi does away with security deposits Sebi does away with security deposits Reviewed by kailash soni on October 12, 2018 Rating: 5
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