Latest news with #EBP-based
Time of India
18-05-2025
- Business
- Time of India
Sebi makes EBP mandatory for all private debt issues above Rs 20 crore
The securities and exchange board of India (Sebi) has tightened rules around private debt placements by making the electronic book platform compulsory for all issues of Rs 20 crore or more. The move is aimed at improving transparency and streamlining the fundraising process. Previously, the electronic book mechanism was only mandatory for issues of Rs 50 crore or more. But under the new framework, it will now apply to private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds , including single, shelf, and follow-on issues within a financial year, as per a circular by Sebi. The regulator also widened the scope of the electronic book provider (EBP) platform to include real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), which were previously not covered under any specific regulatory framework. 'An issuer, if desirous, may choose to access EBP platform for private placement of securitised debt instruments or security receipts or commercial papers (CPs), certificates of deposit (CDs) and issuers constituted as REITs, SM REITs and InvITs can also access the EBP platform for private placement of units of REITs, SM REITs and InvITs,' the board said on Friday. Issuers must now submit the placement memorandum and term sheet at least two working days prior to the opening of the issue, or three working days in advance if they are using the EBP platform for the first time. These documents must include base issue size and any green shoe option, capped at five times the base size. Details of past green shoe allocations must also be disclosed. Sebi has also introduced provisions for anchor investors, depending on the credit rating of the instrument. Issuers can now reserve up to 30% of the issue for AAA to AA- rated instruments, 40% for A+/A-, and 50% for lower-rated ones. Anchor investors must confirm participation electronically one day before the issue, with any unconfirmed portion reallocated to the general issue. To promote fairness, Sebi said that where multiple bids are received at the same cut-off price, allotments must be made on a proportionate basis. The EBP platform is also required to publicly update bidding details and issue-related information on its website either by the end of the bidding day or by 1 PM the next day, depending on when the bidding closes. Further, new timelines have been laid out for obtaining in-principle approval from stock exchanges, by T-2 or T-3 for EBP-based issues and before the opening date for non-EBP issues. While most changes take immediate effect, Sebi said those related to anchor investors, disclosures, and reporting will take effect over the next three to six months. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
18-05-2025
- Business
- Business Standard
Sebi mandates e-book mechanism for private debt securities above Rs 20 cr
Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs. The move, based on recommendations from a working group and public feedback, is aimed at enhancing the efficiency of the Electronic Book Provider (EBP) platform. Under the new framework, the use of the EBP platform is now mandatory for private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds, where the issue size is Rs 20 crore or more, including single, shelf, and subsequent issues within a financial year, according to a Sebi circular. Earlier, the mechanism was mandatory for all private placements of debt securities with an issue size of Rs 50 crore or more. Sebi has extended products on the EBP platform to infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs). Before that, there was no specific regulatory provision. "An issuer, if desirous, may choose to access EBP platform for private placement of securitised debt instruments or security receipts or commercial papers (CPs), certificates of deposit (CDs) and issuers constituted as REITs, SM REITs and InvITs can also access the EBP platform for private placement of units of REITs, SM REITs and InvITs," Sebi said on Friday. The regulator said that issuers are required to submit the placement memorandum and term sheet -- containing key terms and conditions -- at least two working days before the issue opens, or three working days in the case of first-time users of the EBP. The documents must disclose the base issue size and any green shoe option, which is capped at five times the base size. Besides, past green shoe allocations are required to be disclosed. Depending on the credit rating of the instrument, issuers can reserve a portion of the issue -- up to 30 per cent for AAA to AA-, 40 per cent for A+/A-, and 50 per cent for others -- for anchor investors, who will have to confirm their participation electronically one day before the issue. Further, unconfirmed amounts will be reallocated to the base issue. To ensure transparency, Sebi said that if multiple bids are received at the same cut-off price, allotments must be made on a proportionate basis. The EBP is required to publicly update detailed bidding and issue-related information on its website by the end of the bidding day or by 1 PM the next day, depending on when the issue closes. Additionally, revised timelines have been introduced to obtain in-principle approval from stock exchanges before T-2 or T-3 for EBP-based issues and before the issue opens for non-EBP issues. These changes will come into effect immediately, except for certain clauses, including those related to anchor investors, disclosures, and reporting, that will be implemented three to six months from the circular's date.
Time of India
18-05-2025
- Business
- Time of India
Sebi mandates e-book mechanism for pvt debt securities above Rs 20 cr
Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs . The move, based on recommendations from a working group and public feedback, is aimed at enhancing the efficiency of the Electronic Book Provider (EBP) the new framework, the use of the EBP platform is now mandatory for private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds, where the issue size is Rs 20 crore or more, including single, shelf, and subsequent issues within a financial year, according to a Sebi the mechanism was mandatory for all private placements of debt securities with an issue size of Rs 50 crore or has extended products on the EBP platform to infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs). Before that, there was no specific regulatory provision."An issuer, if desirous, may choose to access EBP platform for private placement of securitised debt instruments or security receipts or commercial papers (CPs), certificates of deposit (CDs) and issuers constituted as REITs, SM REITs and InvITs can also access the EBP platform for private placement of units of REITs, SM REITs and InvITs," Sebi said on regulator said that issuers are required to submit the placement memorandum and term sheet -- containing key terms and conditions -- at least two working days before the issue opens, or three working days in the case of first-time users of the documents must disclose the base issue size and any green shoe option, which is capped at five times the base size. Besides, past green shoe allocations are required to be on the credit rating of the instrument, issuers can reserve a portion of the issue -- up to 30 per cent for AAA to AA-, 40 per cent for A+/A-, and 50 per cent for others -- for anchor investors, who will have to confirm their participation electronically one day before the unconfirmed amounts will be reallocated to the base ensure transparency, Sebi said that if multiple bids are received at the same cut-off price, allotments must be made on a proportionate EBP is required to publicly update detailed bidding and issue-related information on its website by the end of the bidding day or by 1 PM the next day, depending on when the issue revised timelines have been introduced to obtain in-principle approval from stock exchanges before T-2 or T-3 for EBP-based issues and before the issue opens for non-EBP changes will come into effect immediately, except for certain clauses, including those related to anchor investors, disclosures, and reporting, that will be implemented three to six months from the circular's date.
Economic Times
18-05-2025
- Business
- Economic Times
Sebi mandates e-book mechanism for pvt debt securities above Rs 20 cr
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs . The move, based on recommendations from a working group and public feedback, is aimed at enhancing the efficiency of the Electronic Book Provider (EBP) the new framework, the use of the EBP platform is now mandatory for private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds, where the issue size is Rs 20 crore or more, including single, shelf, and subsequent issues within a financial year, according to a Sebi the mechanism was mandatory for all private placements of debt securities with an issue size of Rs 50 crore or has extended products on the EBP platform to infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs). Before that, there was no specific regulatory provision."An issuer, if desirous, may choose to access EBP platform for private placement of securitised debt instruments or security receipts or commercial papers (CPs), certificates of deposit (CDs) and issuers constituted as REITs, SM REITs and InvITs can also access the EBP platform for private placement of units of REITs, SM REITs and InvITs," Sebi said on regulator said that issuers are required to submit the placement memorandum and term sheet -- containing key terms and conditions -- at least two working days before the issue opens, or three working days in the case of first-time users of the documents must disclose the base issue size and any green shoe option, which is capped at five times the base size. Besides, past green shoe allocations are required to be on the credit rating of the instrument, issuers can reserve a portion of the issue -- up to 30 per cent for AAA to AA-, 40 per cent for A+/A-, and 50 per cent for others -- for anchor investors, who will have to confirm their participation electronically one day before the unconfirmed amounts will be reallocated to the base ensure transparency, Sebi said that if multiple bids are received at the same cut-off price, allotments must be made on a proportionate EBP is required to publicly update detailed bidding and issue-related information on its website by the end of the bidding day or by 1 PM the next day, depending on when the issue revised timelines have been introduced to obtain in-principle approval from stock exchanges before T-2 or T-3 for EBP-based issues and before the issue opens for non-EBP changes will come into effect immediately, except for certain clauses, including those related to anchor investors, disclosures, and reporting, that will be implemented three to six months from the circular's date.
