Norms cleared to make e-book must for private placement debt issues

By: | Published: January 12, 2016 12:21 AM

To further develop the corporate bond market in India, the Sebi board on Monday approved norms to make electronic book mandatory for all debt private placement...

To further develop the corporate bond market in India, the Sebi board on Monday approved norms to make electronic book mandatory for all debt private placement issues with a threshold above R500 crore. However, the process shall be voluntary for issuances having a single investor.

The proposal to introduce an electronic book is aimed at improving efficiency, transparency of the price discovery mechanism and also reduction of cost and time taken for such issuance. Sebi has allowed recognised stock exchanges to become electronic book providers (EBPs) who will provide bids to the issuer after end of bidding.  An EBP may disclose aggregate volume data on anonymous basis to avoid any speculation, Sebi said. In draft regulations, Sebi had allowed market intermediaries with a net worth over R100 crore as EBPs.

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