for issuance of Debt Securities on private placement basis
New platform will start operations from 01 July, 2016
India’s Capital Market regulator
The Securities and Exchange Board of India (SEBI)
has allowed India’s leading stock exchange, the National Stock Exchange of India Limited (NSE) to
act as an Electronic Book Provider to facilitate electronic book mechanism
for issuance of debt
securities on private placement basis. This new mechanism is aimed at enhancing transparency to discover price.
This
will be a bidding platform for issuance of debt securities on private
placement basis. The salient features of this mechanism are
to steamline procedures for issuance of debt securities on private
placement basis and enhance transparency to discover prices. The new
mechanism will be operationalized from July 01, 2016. It is a bidding platform and will not function as a trading platform.
Main beneficiaries of this mechanism will be issuers, arrangers, sub-arrangers, and participants.
The
Electronic book mechanism will be mandatory for all private placements
of debt securities in primary market with an issue size of
Rs.500 crore and above, inclusive of Green shoe option, if any.
Presently
the issuance of private placement has been made Offline. The detailed
guidelines on electronic book mechanism will be provided
subsequently.
About The National Stock Exchange of India (NSE):
In
its 20 years of existence, NSE has transformed the capital market,
based on technology, innovation, high standards of corporate governance
and management practices. NSE's business practices and high level of
integrity have earned it the trust of the financial markets worldwide.
Besides being a platform of choice for all exchange traded financial
products in India, NSE's flagship index, Nifty50
is used extensively by investors in India and around the world as a
barometer of the Indian capital markets. Since inception, the exchange
has been covered extensively by global media and has won many accolades
in recognition of its contribution in reforming
the Indian securities market. For more information, please visit: www.nseindia.com
For more details, contact:
Arindam Saha | Editor and Communication Head
Mobile: 09930019202 | 09903036100
Direct: 022 – 2659 8164
Twitter: @NSEIndia
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