The stock market regulator Securities and Exchange Board of India (SEBI), through a circular dated May 11 2009 had declared the Simplified Listing Agreement. Based on the feedback received it has further amended the said Agreement. The earlier agreement required the issuers to provide disclosure of the extent and nature of security created and maintained for 100% asset cover.

The new amendment further requires the issuer company to submit half yearly certificate regarding maintenance of 100% asset cover along with their financial results. However, along with banks and NBFC’s, issuers of government guaranteed bonds have been exempted.

Companies raising funds through debt issues are also required to submit to the Exchange, either audited half yearly financial statements or unaudited half yearly financial statements subject to a limited review within 45 days from the end of the half year. In order to protect the interest of investors investing in public issues of debt securities, Sebi has made it mandatory for issuers to deposit 1% of the amount of debt securities offered to public with the stock exchange before the issue opens for subscription. These amendments are with immediate effect.