In addition, six ISINs are available for capital-gains tax debt securities issued by authorised issuers under Section 54EC of the Income Tax Act.An ISIN, or International Securities Identification Number, is a unique 12-character code used to identify securities such as shares, bonds, warrants and commercial papers.The proposal follows representations from market participants and other stakeholders seeking a review of the existing ISIN limits.They have pointed out that the current limits may affect the funding requirements of Non-Banking Financial Companies (NBFCs), as bunching of liabilities could make liquidity management more difficult and increase refinancing risks, impacting asset-liability management.The issue is also relevant for large corporates.
Under Sebi's framework for fund raising by large corporates, entities rated AA or higher and having outstanding long-term borrowings of Rs 1,000 crore or more are required to raise at least 25 per cent of their qualified borrowings through debt securities.Sebi said the existing restriction on the number of ISINs may impede such entities in meeting the regulatory requirement.To provide flexibility to large issuers, Sebi proposed that once the total outstanding amount across the 12 ISINs maturing in a financial year reaches Rs 15,000 crore, one additional ISIN may be permitted.
