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ARTICLE · 18 JULY 2024

Listed Debt Instruments - Reduction In Denomination Permitted

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At its board meeting dated April 30, 2024, the Securities and Exchange Board of India (SEBI) made several amendments to various SEBI regulations. The most significant change was the approval of a reduction...

IndiaFinance and Banking
Manisha Shroff
Manisha Shroff
Shrey Agarwal
Shrey Agarwal
Shubha Ojha
Shubha Ojha
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At its board meeting dated April 30, 2024, the Securities and Exchange Board of India (SEBI) made several amendments to various SEBI regulations. The most significant change was the approval of a reduction in the face value of privately placed debt securities and non-convertible redeemable preference shares to INR 10,000. In its bid to augment market liquidity and diversify the investor base, the SEBI, by way of its circular dated 3 July 2024 (Circular) has amended Chapter V of the Master Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper dated 22 May 2024 (NCS Master Circular) and, amongst others, reduced the face value denomination of debt securities and non-convertible redeemable preference shares (NCRPS) from INR 1,00,000 to INR 10,000. This move is targeted at making debt securities and NCRPS more accessible to non-institutional investors (NIIs).

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