TaxTMI 
TaxTMI 
Clarification on aspects related to day count convention for debt securities issued under the SEBI (Issue and Listing of Debt Securities) Regulations, 2008
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....gistered Merchant Bankers Dear Sir / Madam, Sub.: Clarification on aspects related to day count convention for debt securities issued under the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 1. SEBI vide circular no. SEBI/CBM/BOND/2/2007/13/04 dated April 13, 2007 had provided for the launch of trading platform for the corporate bond market. Further, SEBI, vide Circular no ....
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....th respect to calculation of interest payments on debt securities, multiple standards and different holiday calendars are considered for leap year calculations and payment of interest and maturity proceeds respectively. 3. Based on the discussions with different stakeholders, following clarifications are made: a) If the interest payment date falls on a holiday, the payment may be made ....
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....ext working day. However the calculation for payment of interest will be only till December 31, 2016, which would have been the case if January 01, 2017 were not a holiday. Also, the next dates of payment would remain July 01, 2017 and January 01, 2018 despite the fact that one of the interest payment was made on January 02, 2017. b) In order to ensure consistency for interest calculation....
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.... semi-annually Date of coupon payments : July 01 and January 01 In the above example, in case of the leap year (i.e, 2016), 366 days would be reckoned as the denominator (Actual/Actual), for payment of interest, in both the half year periods i.e. Jan 01, 2016 to Jul 01, 2016 and Jul 01, 2016 to Jan 01, 2017. c) In order to ensure uniformity for payment of ....