SEBI board approves NCD listing relief for first-time issuers

Reports coming in for today mention that The Securities and Exchange Board of India (SEBI) has decided to remove the requirement for issuers to mandatorily list all their outstanding unlisted non-convertible debt securities (NCDs) when they seek to list NCDs for the first time.

The SEBI Board approved an amendment to Regulation 62A of the Stock-exchange debut Obligations and Disclosure Requirements (LODR) Regulations, under which an issuer will only have to list prospective issuances of non-convertible debt securities.

At present, an entity seeking to list its NCDs on bourses is required to list all outstanding unlisted NCDs issued on or after January 1, 2024, within three months of the proposed stock-exchange debut.

SEBI stated the requirement creates operational challenges and additional costs for issuers, including issues related to ISIN limits and covenant monitoring systems, even though the securities have already been subscribed. The regulator additionally noted that information disclosed for outstanding debt issues is common across various series and continuous disclosures under stock-exchange debut agreements are additionally common for different debt series.

Under the amended framework, issuers will as a result not have to retrospectively list their outstanding unlisted NCDs when they list new debt securities. The requirement will apply only to fresh issuances.

SEBI stated the change is anticipated to encourage new issuers to list their debt securities by reducing the operational and compliance burden associated with stock-exchange debut existing unlisted issues. The amendment follows public consultation through a paper issued on August 10, 2026, and recommendations from SEBI's Corporate Bonds and Securitization Advisory Committee.