The Securities and Exchange Board of India (SEBI) on December 09, 2023, issued the Consultation paper on review of provisions of NCS Regulations and LODR Regulations for ease of doing business and introduction of fast track public issuance of debt securities.
The following has been stated namely: -
• The consultation paper details the following:
1. The proposed changes to LODR regulations and NCS Regulations
2. Introduction of concept of Fast Track public issuance and listing of debt securities and proposed norms of the same.
• The need for change: The non-institutional investors consider the high ticket size as a deterrent which restricts their ability to access the market and acts as an entry barrier for such non-institutional investors to participate in the corporate bonds market.
To increase further participation (especially non-institutional investors), a reduction in the minimum face value of debt securities and NCRPS issued on private placement basis has been suggested. This should be coupled with necessary risk mitigation measures.
• The Comments for Consultation Proposal has been requested.
• The comments/suggestions should be submitted by any of the prescribed modes latest by December 30, 2023.
