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Is there a turnover requirement for a private company to be eligible to issue Non-Convertible Debentures (NCDs)? Can an NCD be redeemed before its maturity period of one year? Can the maturity period for an NCD exceed one year? Could you provide a case commentary on Regulation 15 of the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021?
Private companies can issue NCDs if they meet SEBI's eligibility criteria, with no specific turnover requirement. NCDs generally cannot be redeemed early unless specified in the offering document. The maturity period can exceed one year, depending on the issuer’s terms. Regulation 15 of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 mandates transparency, requiring issuers to disclose risk factors, legal issues, and the use of funds to protect investors' interests. For further legal assistance contact us on our helpline number.