Sebi mulls exempting NCS deals from trading window restrictions
NCS includes non-convertible debentures, non-convertible redeemable preference shares, perpetual non-cumulative preference shares and perpetual debt instruments.
Markets regulator Sebi on Thursday proposed exempting transactions involving non-convertible securities (NCS) from trading window restrictions.
The move is aimed at simplifying such transactions and making it easier for market participants.
NCS includes non-convertible debentures, non-convertible redeemable preference shares, perpetual non-cumulative preference shares and perpetual debt instruments.
The Sebi's PIT (Prohibition of Insider Trading) norms restrict trading when someone has access to Unpublished Price Sensitive Information (UPSI).
To prevent unfair advantages, trading windows are closed for designated persons who might possess UPSI.
However, some transactions like rights issues or conversions of warrants are exempt from these restrictions, as they are pre-planned, regulated and subject to disclosures.
In its consultation paper, Sebi has proposed that "certain transactions such as subscription to Non-Convertible Debentures and similar other instruments...May be exempted from trading window restrictions".
These NCS transactions are pre-decided, regulated and subject to necessary disclosures, meeting the criteria for exemption, it added.
Data from April 2022 to August 2024 shows multiple NCS listings, both public and private, across different exchanges.
The Securities and Exchange Board of India (Sebi) has sought comments from public till October 17 on the proposal.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How much money do you need to invest in monthly SIP to make Rs 15 crore retirement corpus if started investing at 30? See calculations
Hindustan Aeronautics, Dr Reddys Labs and 3 more: Axis Direct recommends buying 5 stocks for 5-15 days | Check targets, stop losses
Top 7 SBI Mutual Funds With Best SIP Returns in 15 Years: Rs 5,000 monthly SIP in No. 1 fund has grown to Rs 68,84,790
SBI Amrit Kalash Scheme: Last 5 days to invest; Know what you will get on Rs 4 lakh, 6 lakh and 8 lakh investment in this 400-day guaranteed return scheme
Top 7 Mutual Funds With Highest Returns in 10 Years: No. 1 fund has converted Rs 10 lakh investment into Rs 92,52,530; know what others have done
10 stocks to buy for long term: Piramal Pharma, Pitti Engineering, Kalpataru Projects, 7 others; note down targets
08:54 PM IST