Markets regulator Sebi on Tuesday clarified on the allocation of new ISINs (International Securities Identification Number) by depositories.
ISINs, which has 12 characters, is used for uniquely identifying securities like stocks, bonds, warrants and commercial papers.
The regulator said that depositories will not assign new ISIN following a change in underlying security and creation of additional security in case of listed debt securities.
Also, the new ISIN would not be allocated pursuant to creation of security in case of unsecured debt securities.
The regulator clarified that none of these cases would constitute a change in the structure of the non-convertible debt securities, provided there are no other changes to the nature of issue of the non-convertible debt securities like maturity date, coupon rate, face value, redemption schedule, nature of the non-convertible debt securities (secured or unsecured) etc.
"Accordingly, depository shall not assign a new ISIN in such cases," Sebi said.
However, where there is a change in the underlying security, the debenture trustee would ensure compliance with the debenture trustee rules.
This comes after Sebi received representations from depositories and market participants seeking clarifications with respect to allocation of new ISIN pursuant to a change in underlying security; creation of additional security; or creation of security in case of unsecured debt securities.
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