Sebi news: Sebi cuts face value of privately-placed debt securities to enhance participation

With the aim of increasing participation, the Securities and Exchange Board of India (Sebi) on Friday reduced the face value of debt securities, including non-convertible debentures, issued on a private placement basis to Rs 1,00,000 from Rs 10,00,000 earlier.

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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