Question

Under the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, the issuer of listed debt securities must, in respect of INTEREST and PRINCIPAL payments:

Q: Answer-Under the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, the issuer of li...

Among the continuing obligations under the NCS Regulations is the TIMELY PAYMENT of interest and the aggregate redemptionprincipal amount as contracted. An issuer who delays payment attracts the prescribed consequences including penal interest and the disclosureremedial events reflecting default, and the stock exchangeSEBI monitor compliance. Timely coupon and redemption service maintains the credit integrity of the listed debt and protects debenturebond investors. The Regulations thus police the payment discipline of listed debt issuers. This is a continuing-obligation thesis central to the debt market.

A Pay interest and redemption amounts on the agreed due dates, and any delayed payment attracts the prescribed penal/promotional consequences, keeping such payments transparent to investors

B Make payments only at the issuer's convenience

C Deduct interest from the principal without declaration

D Defer coupon payments indefinitely

Practice Next