The regulator's latest circular on private placement debt has been welcomed by market participants.
The circular removes the mandatory merchant banker requirement for listed issuers raising debt via private placement at a face value of ₹10,000 or more, provided they meet a set of eligibility criteria.
Eligibility requires the issuer to be regulated by a recognised financial regulator, listed on a recognised exchange for at least one year, free of pending fines or penalties, and with a clean repayment record over the last three financial years.
The debt security must carry a rating of at least AA- at issuance; for central public sector enterprises, unsecured issues are permitted.
Analysts predict the change could reduce issuance costs by up to 1‑2% of deal value and broaden retail access to high‑rated securities, potentially boosting private placement volumes by 5‑10% this year.
The rule takes effect immediately; issuers will still need to secure SEBI approval and meet operational requirements set by stock exchanges, with market watchers eyeing the first tranche of issuances in Q4.