Sebi proposes exemption from merchant banker requirement for small debt issuance

The Securities and Exchange Board of India has proposed an exemption allowing certain listed companies to bypass the merchant banker appointment requirement for small-value debt private placements. The move aims to reduce issuance costs and encourage more frequent small-value debt offerings.

To qualify for the exemption, issuers must meet specified criteria: they must be regulated, listed for over a year, hold a strong credit rating, and have no recent defaults. The proposal targets established, well-rated firms with clean compliance records.