The capital market regulator received requests from various market participants with respect to the reduction in the face value. In particular, non-institutional investors consider the high ticket size as a deterrent, which restricts their ability to access the market for corporate bonds.
If the face value and trading lot is reduced, more investors can participate, which in turn will enhance the liquidity in the corporate bond market, Sebi said.
The new norm will be applicable to all private placement debt securities and nonconvertible redeemable preference shares from January 1, 2023.
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