Reduction in denomination of debt securities and non-convertible redeemable preference shares

SEBI has updated Chapter V of the Master Circular on the issuance and listing of debt securities and non-convertible redeemable preference shares, effective May 22, 2024. The revision allows private placement of these securities at a face value of ₹10,000, down from ₹1 lakh. Conditions include appointing a Merchant Banker and ensuring securities are interest-bearing with fixed maturity. Credit enhancements like guaranteed bonds and standby letters of credit are permitted, with Credit Rating Agencies required to verify support documentation. Clauses setting minimum face values for traded securities are deleted, and a uniform trading lot equal to the face value is mandated. This update aims to encourage broader investor participation and market liquidity.