Credit Rating

An issuer can make an initial public offer of convertible debt instruments without making a prior public issue of its equity shares and listing thereof, subject to the following conditions:

 

– No company can make a public issue or rights issue of convertible debt instruments unless credit rating is obtained from one or more agencies i.e. credit rating is mandatory.

– The company is required to give the following details of credit ratings in case of a public issue or rights issue of convertible debt instruments:

 

(a) The names of all the credit rating agencies from which credit rating including unaccepted rating has been obtained for the issue of convertible debt instruments.

 

(b) All the credit ratings obtained during three years prior to the filing the offer document for any of the issuer’s listed convertible debt instruments at the time of accessing the market through a convertible debt instrument.