Framework for public issuance of convertible securities
Framework for public issuance of convertible securities: Bhargavi Zaveri, Shivangi Tyagi, Shefali Malhotra, Radhika Pandey and Anushree Das. Response to SEBI Discussion Paper, December 2015.
Convertible securities are a curious mix of debt and equity - more specifically, debt that gets converted into equity. From the perspective of the Regulator, the question is whether these securities must be regulated as debt or equity. SEBI issued a discussion paper seeking public comments on its proposed approach for regulating convertible securities. In our response to the discussion paper, we recommended: