TMI BlogIssuance, listing and trading of Perpetual Non-Cumulative Preference Shares (PNCPS) and Innovative Perpetual Debt Instruments (IPDIs)/ Perpetual Debt Instruments (PDIs) (commonly referred to as Additional Tier 1 (AT 1) instruments)X X X X Extracts X X X X X X X X Extracts X X X X ..... Is) (commonly referred to as Additional Tier 1 (AT 1) instruments) 1. Perpetual Non-Cumulative Preference Shares (PNCPS ) and Innovative Perpetual Debt Instruments (IPDIs) / Perpetual Debt Instruments (PDIs) (commonly referred to as AT 1 instruments) are essentially non-equity regulatory instruments, forming part of a bank s capital, governed by Reserve Bank of India (RBI) guidelines and issued under the issuance and listing framework given under Chapter VI of the SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013 ( NCRPS Regulations ). 2. These instruments have certain unique features which, inter-alia, grant the issuer (i.e. banks, in consultation with RBI) a discretion in terms of writi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are allowed to participate in the issuance of AT1 instruments. c. Allotment size The minimum allotment of AT1 instruments shall not be less than ₹ 1 crore. d. Trading lot size The minimum trading lot size for AT1 instruments shall be ₹ 1 crore. e. Other requirements: Issuers, in addition to making disclosures as per Schedule I of the SEBI NCRPS Regulations, shall comply with the following: i. Disclosures as specified in Annex I. ii. Provisions of circulars as specified in Annex II. iii. Specific disclosures about: a) Details of all the conditions upon which the call option will be exercised by them for AT1 instruments, in the Information /Private Placement Memorandum. b) Risk fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of execution of the same. 2 An undertaking that permission / consent from the prior creditor for a second or pari passu charge being created, where applicable, in favor of the trustees to the proposed issue has been obtained. 3 Latest Audited / Limited Review Half Yearly Consolidated (wherever available) and Standalone Financial Information (Profit Loss statement, Balance Sheet and Cash Flow statement) and auditor qualifications. 4 A copy of the latest annual report to the Trustee and the Trustee shall be obliged to share the details submitted under this clause with all Qualified Institutional Buyers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon Type (Fixed, floating or other coupon structure),Coupon Reset Process (including rates, spread, effective date, interest rate cap and floor etc). Day Count Basis( Actual/ Actual), Security (where applicable) (Including description, type of security, type of charge, likely date of creation of security, minimum security cover, revaluation, replacement of security [ , interest to the AT1 instruments holder over and above the coupon rate as specified in the Trust deed and disclosed in the IM/PPM, Roles and responsibility of Debenture Trustee. Annex II S. no Circular date Subject Cir.no 1 Oct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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