ntroduction
An issuer should get an ISIN (International Securities Identification Number) from NSDL before issuing Debentures or Bonds in demat form. Various ISIN applications get delayed due to incomplete documents, incorrect cash flow details, or mismatches in security information.
To ensure seamless approval of the ISIN application, issuers must concentrate on two areas:
- Points to consider before applying for an ISIN.
- Documents needed for a new ISIN request.
Step 1: Points to Consider Before Applying for a Debenture ISIN
Confirm finalization of all Security Details
Before applying, the issuer should know the following things:
The specified information in the application should match the supporting documents.
Provide cash flow information
Cash flow information is obligatory for the complete tenure of the debenture.
The issuer must confirm that:-
- Interest payment dates are accurately mentioned.
- Redemption dates are accurately captured.
- Cash flow is furnished from the allotment date till the maturity date.
- No field is left blank while uploading the cash flow file.
Validate Maturity Date
If maturity dates vary in securities, then there is a need for separate ISINs.
An ISIN with multiple maturity dates cannot be utilised for securities.
Verify Credit Rating Requirement
- For listed debt securities, a credit rating is mandatory.
- For unlisted debt securities, rating details are needed only if the issue is rated.
Only the latest valid rating letter must be submitted.
Select Correct Redemption Type
The issuer should precisely identify whether the security has:
- Full Redemption
- Partial Redemption by Face Value
- Partial Redemption by Quantity
The redemption schedule and cash flow details must match.
Mention Put/Call Option
If the debenture includes a Put Option or Call Option, it should be mentioned in the term sheet along with relevant dates and conditions.
Review All Details Before Submission
Before submission of the application, confirm that:
- The MCF and Term Sheet contain the same information.
- Coupon details are correct.
- Face Value is correct.
- Cash Flow Schedule is accurate.
- All supporting documents are uploaded properly.
Step 2: Essential documents for New Debenture ISIN Application
Concerning a new ISIN request, the issuer must submit the documents mentioned below, digitally signed:
Master Creation Form (MCF)
MCF includes all the basic security information and serves as the primary document for ISIN creation.
Term Sheet/PAS-4/Debenture Trust Deed (DTD)/Key Information Document (KID)
This document has the terms and conditions of the issue, along with the coupon rate, maturity date, redemption structure, and other important details.
Board Resolution/Allotment Resolution
A Board resolution approving the issuance of debentures is needed.
If allotment has been attained earlier, there is a need to submit the allotment resolution.
Credit Rating Letter (If Applicable)
A credit rating letter is needed for:
- Listed debt securities.
- Rated unlisted debt securities.
Call Money Letter (Applicable for Partly Paid Securities)
The document is needed merely when a partly paid security is being converted into a fully paid security.
Simple ISIN Approval Checklist
Before application submission, confirm that:
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