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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.
Mint
16-05-2025
- Business
- Mint
LIC-owned NBFC stock approves raising up to ₹50 crore via NCDs. Details here
LIC-backed non-banking financial company (NBFC) Paisalo Digital has approved raising funds up to ₹ 50 crore through the issuance of Non-Convertible Debentures (NCDs). The fundraising proposal was cleared by the company's Operations and Finance Committee at its meeting held on May 15, 2025, as per a regulatory filing. The proposed issue will take place through private placement on the Electronic Book Provider (EBP) platform, and involves the issuance of up to 5,000 NCDs, each with a face value of ₹ 1 lakh. The base size of the issue is ₹ 25 crore, with an option to retain oversubscription of another ₹ 25 crore, taking the total potential raise to ₹ 50 crore. The debentures will carry a coupon rate of 10 percent per annum and have a maturity period of 24 months. Interest payments will be made monthly, and the principal will be redeemed at par at the end of the term. The NCDs are proposed to be listed on the BSE. The tentative date of allotment is May 22, 2025, subject to regulatory approvals. The issue will be secured by a first-ranking pari-passu charge on hypothecated receivables, with a security cover of at least 1.10 times the principal amount outstanding. In the event of any delay in the payment of interest or principal, the company will offer an additional 2 percent per annum coupon as compensation. Paisalo clarified that there are no special rights or privileges attached to the instrument and that the proposal has not been modified or cancelled. The issuance is being made in accordance with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. Paisalo Digital counts some heavyweight institutional investors among its shareholders. LIC holds 77.6 lakh shares, representing a 1.17 percent stake, which would drop slightly to 1.03 percent assuming full conversion of convertible securities. Meanwhile, SBI Life Insurance owns over 6.21 crore shares, holding a 9.36 percent stake. Post conversion, its stake would stand at 8.26 percent, based on data from the stock exchanges. Despite the positive announcement, Paisalo Digital's stock has been under pressure, shedding 47 percent over the last one year. The stock fell for five consecutive months, including 5.2 percent in April, 8 percent in March, 14.3 percent in February, 13.3 percent in January, and 2.4 percent in December. However, May brought some respite with the stock rising 6 percent month-to-date, signaling a possible trend reversal. Still, it remains over 57 percent below its 52-week high of ₹ 81.95, touched in July 2024. On the upside, it has recovered 17 percent from its 52-week low of ₹ 29.75, hit in April 2025.
