Face value of debt security & non-convertible redeemable preference share reduced: SEBI
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- By Chetan Kulasri
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- Last Updated on 31 October, 2022
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CIRCULAR NO. SEBI/HO/DDHS/P/CIR/2022/00144, Dated 28.10.2022
Earlier, SEBI mandated that the face value of each debt security or non-convertible redeemable preference share issued on a private placement basis shall be Rs. 10 lakh. SEBI received various representations from various market participants, requesting for a review of the said denominations. Accordingly, SEBI has reduced the face value of debt securities from Rs. 10 lakh to Rs. 1 lakh. The motive is to increase the investor’s participation in the corporate bond market.
These provisions shall be applicable to all issues of debt securities and non-convertible redeemable preference shares, on a private placement basis, through new ISINs, on or after January 1, 2023.
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