Sebi news: Sebi cuts face value of private debt securities to boost participation

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

The capital market regulator received requests from various market participants for a reduction in face value. In particular, non-institutional investors see high ticket prices as a hindrance, limiting their access to the corporate bond market.

If face value and trading lots decrease, more investors can participate, which in turn will enhance liquidity in the corporate bond market, Sebi said.

The new norm will be applied to all privately issued debt securities and non-convertible redeemable preferred shares as of January 1, 2023.

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