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<h1>SEBI Amends Capital Disclosure Rules: Debt-to-Equity Conversion in Strategic Restructuring; Exemptions for Preferential Issues.</h1> The Securities and Exchange Board of India (SEBI) issued the Second Amendment Regulations, 2015, for the Issue of Capital and Disclosure Requirements. Effective upon publication in the Official Gazette, these amendments introduce provisions for converting debt into equity under a strategic debt restructuring scheme. The regulations specify that preferential equity issues to banks and financial institutions as part of debt restructuring are exempt from certain requirements, provided conditions such as conversion price determination, valuation by independent valuers, a one-year lock-in period, and compliance with the Companies Act, 2013, are met. The amendments also allow other secured lenders to participate under similar terms.