Sebi Relaxes Listing Rules for Unlisted ISINs

New Delhi, Dec 13 (PTI) Markets regulator Sebi on Friday provided relaxation to issuers aiming to list their unlisted International Securities Identification Numbers (ISINs) outstanding as of December 31, 2023 to encourage bringing these into the listed space.

Under the new framework, such ISINs, when converted to listed ones, will be excluded from the maximum ISIN limit that can mature in a financial year.

This measure is aimed at encouraging issuers to bring their unlisted ISINs into the listed space, promoting greater transparency and market participation.

The ISIN (International Securities Identification Number) code, which has 12 characters, is used to identify securities like stocks, bonds, warrants, and commercial papers.

Regulation 62A of Sebi's LODR (Listing Obligations and Disclosure Requirements) Regulations, mandates a listed entity (whose non-convertible debt securities are listed) to list all non-convertible debt securities, proposed to be issued on or after January 1, 2024, on the stock exchanges.

Additionally, it provides an option to a listed entity, to list its outstanding unlisted non-convertible debt securities issued on or before December 31, 2023.

Under the rule, Sebi specified a maximum of 14 ISINs that can mature in a financial year in respect of private placement of debt securities. In addition, a further six ISINs are available for the issuance of the capital gains tax debt securities by the authorised issuers under the Income Tax Act, 1961.

"In order to encourage issuers to list their grandfathered outstanding unlisted ISINs, it has been decided that unlisted ISINs outstanding as on December 31, 2023, converted to listed ISINs, subsequent to introduction of Regulation 62A, shall be excluded from the maximum limit of ISINs specified," Sebi said in a circular on Friday.

Accordingly, unlisted ISINs outstanding as on December 31, 2023 which are converted to listed ISINs, pursuant to the provision of Regulation 62A(2) of LODR Regulations shall be excluded from the maximum limit of ISINs to mature in a financial year, it added.