Electronic book mechanism for issuance of securities on private placement basis - Clarifications

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.... of Electronic Book Provider platform (EBP Platform), for private placement of securities. 2. With a view to further rationalise and ease the process of issuance of securities on EBP platform and in consultation with the market participants, it has been decided to provide for the following additional facilities: a) Closed bidding In addition to the current system of open bidding, closed bidding shall also be permitted on EBP platform subject to the issuer disclosing the mode of bidding in the PPM/IM. Under closed bidding, there shall be no real time dissemination of bids on the EBP platform. b) Multiple yield allotment An issuer can choose either uniform yield or multiple yield allotment, provided the same is disclosed in the PPM/IM. ....

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....Section 11(1) read with regulation 31(2) of ILDS Regulations of the Securities and Exchange Board of India Act, 1992. 6. This Circular is available on SEBI website at www.sebi.gov.in under the categories "Legal Framework" and under the drop down "Corp Debt Market". Yours faithfully, Richa G. Agarwal Deputy General Manager Department of Debt and Hybrid Securities Tel No.022-2644 9596 Email id - [email protected] Annexure - A A. Para 5 of the EBP circular is modified to read as under: 5. Electronic Book Providers are directed to: 5.1. comply with the conditions laid down in this circular; 5.2. put in place necessary systems and infrastructure for implementation of this circular; 5.3. make consequential changes, if any, to their ....

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....ssful closure of issue, shall share the allocation details with the Registrar to an Issue, associated with the issue. F. Clause 6.3.4 of Schedule - A of the EBP circular shall be deleted. G. Clause 6.3.6 of Schedule - A of the EBP circular is modified to read as under: All the bids made in a particular issue, shall be disclosed on the EBP platform, in the following format: Table 2 Yield (%) Demand at that particular yield (in Rs. Crore) Cumulative Demand (in Rs. Crore) For issues with open bidding, the aforesaid information shall be disseminated on a real time basis, however, for issues with closed bidding, the information shall be disseminated after closure of bidding. H. Clause 6.3.7 of Schedule - A of the EBP circular is modifi....

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....count number and the quantum of funds received. c. RTA, will then reconcile the information received from escrow bank with the details as provided by EBP and after reconciliation RTA shall intimate to the issuer about receipt of funds. Subsequently, issuer will initiate the process of corporate action through the RTA to Depository. d. RTA, after passing on the instructions for corporate action to the depositories, will issue instruction to the escrow bank to release money to the issuers bank account. B. Responsibilities of various entities involved in the process Issuer shall; a. open an escrow bank account/ have a escrow bank account jointly with a RTA, where the role of the RTA in operating such bank account shall be limited to the r....