Market regulator Securities and Exchange Board of India (SEBI) on Wednesday relaxed the mandatory merchant banker appointment requirement for certain listed issuers raising debt through private placement, in a move aimed at easing fundraising and expanding retail investor access to high-rated securities.
Under the revised framework, eligible issuers can privately place debt securities with a face value of Rs 10,000 without appointing a merchant banker, provided they meet conditions prescribed by SEBI.
The issuer must be registered with or regulated by a financial sector regulator in India, including SEBI, the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI) or the Pension Fund Regulatory and Development Authority (PFRDA).
The issuer must also have been listed on a recognised stock exchange for at least one year. Further, there should be no pending fines or penalties imposed by SEBI or stock exchanges for non-compliance with applicable provisions of the SEBI Listing Obligations and Disclosure Requirements Regulations.
Stock exchanges will confirm compliance with these conditions when granting in-principle approval for the debt issue.