INSUBCONTINENT EXCLUSIVE:
Companies and investors looking to buy firms, whose debt restructuring exercise is not under the insolvency rules, will not get exemptions
This, along with a raft of decisions such as allowing mutual funds in commodity derivatives, tightening valuation norms for debt mutual
funds and granting permanent registration to custodians, among others, were taken by the Securities and Exchange Board of India (Sebi) in
will affect companies looking to restructure their debt
decision will impact the companies in which the lenders are restructuring debt without being referred to insolvency under NCLT under debt
subscribe to equity of such company, then such subscription to equity shares will not be exempt under Sebi ICDR Regulations or Sebi Takeover
exemptions would be granted if it is approved by a court or a tribunal.
Under takeover rules, if any person acquires more than 25 per cent
companies that go through IBC proceedings becomes nearly zero
However, for companies that are undertaking pre-IBC debt restructuring, it is difficult to ascertain the equity value since we only know
by debt mutual funds shall be reduced from existing 60 days to 30 days
The rule will require liquid schemes to mark-to-market bonds with maturity above 30 days
COMMODITIES TRADING
The Sebi board allowed mutual funds and portfolio managers to trade in exchangetraded commodity
alternative investment funds, which are already permitted to participate in commodity derivatives, has now been allowed to deal with goods
in delivery against physical settlement of such contracts.
TRADING IN INVITS, REITSThe regulator said the trading lot for publicly issued
Infrastructure Investment Trusts (InvITS) and Real Estate Investment Trusts (REITS) would be 100 lots each, made in the multiples of a lot
each consisting of 100 units and the value of such allotment would be Rs 1 lakh for InvITS and Rs 50,000 for REITs.
The value of such
allotment lot for InvITs shall be Rs 1lakh and for REITs, it shall be Rs 50,000, it said
