Sebi Proposes Exemption For Small-Ticket Debt Issuances
· Business · Economic Times, LiveMint
The Securities and Exchange Board of India has proposed exempting small-value debt issuances from the mandatory requirement of appointing a merchant banker. This move is intended to lower compliance costs and encourage listed companies to raise funds through private placements. To qualify for the exemption, issuers must be regulated by a financial sector authority and have been listed on a recognized stock exchange for at least one year. Additionally, companies must provide an auditor's certificate confirming they have no recent defaults or pending fines.
Why it matters
The proposal aims to make it cheaper and easier for listed companies to raise capital, potentially boosting market activity for small-ticket debt.
Read the original report — Economic Times
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