Context:
SEBI has made Electronic Book Provider (EBP) platform usage mandatory for all private placement debt issues of ₹20 crore or more.
- Earlier threshold: ₹50 crore
- Revised threshold: ₹20 crore
Expanded Scope of Applicability
- Instruments now covered under EBP mandate:
- Debt securities
- Non-convertible redeemable preference shares (NCRPS)
- Municipal bonds
- Instruments issued by REITs (Real Estate Investment Trusts)
- Instruments issued by InvITs (Infrastructure Investment Trusts)
Objective of the Move
- Improve transparency, price discovery, and efficiency in the debt market
- Streamline and standardize private placement processes
- Enhance credibility and robustness of the EBP mechanism
Background
- The move follows recommendations of a SEBI working group
- Incorporated public feedback before finalization
- Part of SEBI’s broader goal to deepen the corporate bond market in India
Implications
- Broader mandatory compliance with EBP norms across issuers
- Inclusion of newer market participants like REITs and InvITs
- Encouragement of wider investor participation and market integrity
