Listing of securities on NSE Debt segment

Listing of securities on NSE Debt segment: In the financial market, there are a variety of debt instruments and securities that are issued by the enterprises of wide spectrum being in public and private sectors. The debt instruments issued by government of all stages are generally deemed to be listed and considered to be carrying more liquidity than those issued by the players who have not got them listed on the exchanges.

National stock exchange (NSE) provides for a platform where the debt instruments and securities can be listed upon meeting the eligibility criteria and the underlying conditions. Debt instruments have increasingly becoming popular over the time, so is the market capitalization of the listed securities on the Debt segment.

Eligibility criteria to list on NSE Debt segment:

Eligibility criteria differ from issuer to issuer based on which category he falls in. It also changes based on the kind of instruments such as structured or non-structured, market linked or not etc.

1. When the issuer is a Public limited company or Private limited company:

Structured Product/Market Linked Debentures Non-Structured Product/Non-Market linked Debentures
  • Networth of 100 crores
  • Credit Rating prefix of ‘PP-MLD’
  • Paid-up capital of Rs.10 crore
  • Market capitalization of Rs.25 crores
  • In case of unlisted companies Networth more than Rs.25 crores
  • Compulsory Credit rating

2. If the issuer is a Bank:

Structured Product/Market Linked Debentures Non-Structured Product/Non-Market linked Debentures
  • Networth of 100 crores
  • Credit Rating prefix of ‘PP-MLD’
  • Qualifies for listing
  • Should be a scheduled bank
  • Networth of Rs.50 crores or above
  • Qualifies for listing

3. If the issuer is a financial institution including industrial development corporation:

Structured Product/Market Linked Debentures Non-Structured Product/Non-Market linked Debentures
  • Networth of 100 crores
  • Credit Rating prefix of ‘PP-MLD’
  • Qualifies for listing
  • Qualifies for listing
  • Compulsory Credit rating

4. When the issuer is a PSU/ corporation established under Special Act of Parliament or State Legislature, Local bodies/authorities:

Structured Product/Market Linked Debentures Non-Structured Product/Non-Market linked Debentures
  • Networth of 100 crores
  • Credit Rating prefix of ‘PP-MLD’
  • Qualifies for listing
  • Qualifies for listing
  • Compulsory Credit rating

5. In case of Mutual Funds: Units of any SEBI registered Mutual Fund/scheme : Investment objective to invest predominantly in debt or Scheme is traded in secondary market as debt instrument:

Structured Product/Market Linked Debentures Non-Structured Product/Non-Market linked Debentures
  • Networth of 100 crores
  • Credit Rating prefix of ‘PP-MLD’
  • Qualifies for listing
  • Qualifies for listing

6. In the case of infrastructure companies : Tax exemption and recognition as infrastructure company under related statutes/regulations:

Structured Product/Market Linked Debentures Non-Structured Product/Non-Market linked Debentures
  • Networth of 100 crores
  • Credit Rating prefix of ‘PP-MLD’
  • Qualifies for listing
  • Qualifies for listing
  • Compulsory Credit rating

If the equity shares of an issuer are listed on other stock exchanges but not listed on Capital Market segment of the Exchange, though eligible, then the debt securities of the said issuer will not be permitted to be listed on the Debt segment

Qualifies for listing

Wherever it is mentioned as “Qualifies for listing” in the criteria listed out there above, it means the issuer should qualify for listing under the respective Acts, Rules or Regulations under which the securities are issued.

Credit Rating prefix of ‘PP-MLD’:

PP-MLD is a standardized rating symbol which means “Principal protected market linked debentures”.

Listing process & Conditions associated with it:

  • If the issuer of a security wants to list his securities, he has to forward an application in the format prescribed in Annexure I, which can be downloaded by visiting below link:

https://www.nseindia.com/getting_listed/resources/download/debt_applform1.xlsx

  • Along with the application, the issuer has to submit such supporting documents/information as specified in Annexure I.
  • On getting in-principle consent of the exchange the issuer has to enter into a listing agreement in the prescribed format under its common seal.
  • Upon listing, the issuer has to ensure that all requirements of law, any guidelines/directions of Central Government, other Statutory or local authority are complied.
  • The Issuer shall also comply with the post listing compliance as laid out in the listing agreement and shall also comply with the rules, bye-laws, regulations and any other guidelines of the Exchange as amended from time to time