The SEBI vide its notification dated 14 August 2017, has amended Regulation 70 of the SEBI (Issue of capital and disclosure requirements) Regulations, 2009. In case of Conversion of debt into equity under strategic debt restructuring scheme, the pricing guidelines have been made in line with the Companies act 2013. With this amendment, the said regulation shall not be applicable in case of conversion of their debt, as part of a debt restructuring scheme, if the following conditions are satisfied:

  • The listed entities, while determining the conversion price for conversion of debt shall be as specified by the Reserve Bank of India and the shall be in compliance with the applicable provisions of the Companies Act, 2013.
  • the conversion price shall be certified by two independent qualified valuers, and for this purpose ‘valuer’ shall be a person who is registered under section 247 of the Companies Act, 2013 and the relevant Rules framed thereunder. Till the relevant Rules for registered valuer comes into force, valuer shall mean an independent merchant banker registered with the Board or an independent chartered accountant in practice having a minimum experience of ten years;
  • The securities allotted shall be lock in for one year from the date of allotment. Prior to this amendment, lock in would start from the date of trading approval.


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