Proactive Forward-Looking Regulations Approved By SEBI Board: Goenka

Disclosure of financial statements via QR code or weblink. Digitisation of the fixed income industry will help in fast information dissemination and also increase efficiencies in listing of debt

Vishal Goenka, Co-founder, IndiaBonds.com

FinTech BizNews Service

Mumbai, April 30, 2024: The Minutes of the SEBI Board Meeting have been released on Tuesday, 30th April, 2024 on Amendments to SEBI (Issue and Listing of Non-Convertible Debentures) Regulations 2021. Vishal Goenka, Co-Founder of IndiaBonds.com shares analytical views on this important development:

“In the SEBI Board Meeting Minutes released on 30th April, a lot of proactive forward looking proposed regulations have been approved.

These pertain as Amendments to SEBI (Issue and Listing of Non-Convertible Debentures) Regulations 2021. The important points are:

1. Reduction in face value of private placed debt to INR 10,000 from current Rs. 1 lac, subject to appointment of Merchant Banker. As more than 90% of issued corporate debt is privately placed, this will accelerate the retailisation of the corporate bond markets due to reduction in investment minimum size.
2. Standardisation of Record Date to 15 days prior to any interest payment or redemption date. Currently there exists cumbersome admin for identifying and communication record dates to investors as there is a large variance in practices. Standardising this period streamlines the industry, provides clarity to investors and makes the bond markets more efficient.
3. Disclosure of financial statements via QR code or weblink. Digitisation of the fixed income industry will help in fast information dissemination and also increase efficiencies in listing of debt.

Overall, very progressive steps taken from the discussion white paper that was issued a few months back by SEBI. We hope for continued standardization and financial infrastructure streamlining to facilitate bond investments from the entire investor community at large.”