Markets regulator Sebi on Tuesday clarified the allocation of new ISINs (International Securities Identification Numbers) by depositories.

ISINs have 12 characters and are used to uniquely identify securities such as stocks, bonds, warrants, and commercial paper.

The regulator said custodians would not assign new ISINs after the underlying securities changed and additional deposits were created in the case of listed debt securities. Also, no new ISIN is assigned when the security is created for unsecured debt securities.

Sebi clarified that none of these circumstances constitutes a change in the structure of the non-convertible bond if there are no other changes to the nature of the non-convertible bond issue such as maturity date, coupon rate, face value, redemption schedule, nature of the non-convertible debt securities (secured or unsecured), etc.

“Therefore, in this case, the depository must not assign a new ISIN,” Sebi said. However, if the underlying securities change, the bond trustee will ensure compliance with the bond trustee rules.

Previously, Sebi had received representations from depositories and market participants seeking clarification on the allocation of new ISINs based on changes in underlying securities, the creation of additional securities or the result of securities in the case of unsecured debt securities.