TaxTMI 
TaxTMI 
Modification in the conditions specified for reduction in denomination of debt securities
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....; Registered Depositories; Registered Credit Rating Agencies, Debenture Trustees, Merchant Bankers, Registrars to an Issue and Share Transfer Agents, Bankers to an Issue; Dear Madam/ Sir, Subject: Modification in the conditions specified for reduction in denomination of debt securities 1. SEBI, vide circular SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/94 dated July 03, 2024 (hereinafter refe....
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....erence share which is convertible into or exchangeable with equity shares of the issuer at a later date, at the option of the holder or not.] subject to certain conditions. Accordingly, amendments were made in Chapter V (Denomination of issuance and trading of Non-Convertible Securities) of the Master Circular no. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025, (hereinafter ref....
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....e investment grows over time without interim pay-outs. Such structure makes these instruments attractive to investors looking to diversify their portfolios. 4. In view of the above, Clause 1.3 of Chapter V of the NCS Master circular dated October 15, 2025 shall be partially modified as under: "1.3 The Issuer may issue debt security or non-convertible redeemable preference share on priv....
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..... Consequently, pursuant to the amendment proposed in para 4 above (paragraph is highlighted in bold and underlined for ease of reference), the issuer shall be eligible to issue debt security at a reduced face value which may be either interest bearing or zero interest bearing security. 6. All other provisions of the NCS Master Circular shall remain unchanged. 7. The provisions of this circu....