Business

Sebi to introduce fast track concept for public issuance of debt securities

To deepen the bond market, Sebi is looking to introduce the concept of ‘fast track’ public issuance for debt securities and further reduce the face value of debt securities, including non-convertible debentures, issued on a private placement basis to Rs 10,000 from Rs 1 lakh at present.
If implemented, the move would also promote ease of doing business.
“The main intention of a fast track public issuance of debt securities is to facilitate frequent issuers with a consistent track record, to make public issues of debt securities with reduced time, cost and effort,” Sebi said in its consultation paper.
To further enhance the participation of the non-institutional investors in the corporate bond market, Sebi has “proposed to permit issuers to launch NCDs (non-convertible debentures) or NCRPS (non-convertible redeemable preference shares) with the face value of Rs 10,000”.
However, in such cases, the issuer should appoint a merchant banker who would carry out due diligence for issuance