Debt Securities

Debt securitisation volume rises to ₹49,000 crore in April-June quarter

Total number of originators in these securitisations, wherein a lender hands over future receivables on a single or a bunch of loans to a new entity usually on a discount, was around 90, Crisil report

Sebi comes out with operational framework for ESG debt securities

Markets regulator Sebi on Thursday came out with an operational framework for issuance of social bonds, sustainability bonds and sustainability-linked bonds, which together will be known as Environment, Social and Governance (ESG) debt securities. This will help issuers to raise money for more sustainable projects, assisting in closing the funding gap for the Sustainable Development Goals. In its circular, Sebi said the debt securities will be labelled as 'social bonds' or 'sustainability bonds' or 'sustainability-linked bonds' only if the funds raised through the issuance of such debt securities are proposed to be utilised for financing or refinancing projects. The regulator has addressed the initial and continuous disclosures for sustainable securitised debt instruments that would be based on international frameworks. Initial disclosures would be made in the offer document for the securities, while continuous disclosures would be included in annual reports or other mandated ...

Sebi mandates e-book mechanism for private debt securities above Rs 20 cr

Markets regulator Sebi has made the electronic book mechanism mandatory for all private placement debt issues of Rs 20 crore or above and expanded the platform's scope to include REITs and InvITs. The move, based on recommendations from a working group and public feedback, is aimed at enhancing the efficiency of the Electronic Book Provider (EBP) platform. Under the new framework, the use of the EBP platform is now mandatory for private placements of debt securities, non-convertible redeemable preference shares (NCRPS), and municipal bonds, where the issue size is Rs 20 crore or more, including single, shelf, and subsequent issues within a financial year, according to a Sebi circular. Earlier, the mechanism was mandatory for all private placements of debt securities with an issue size of Rs 50 crore or more. Sebi has extended products on the EBP platform to infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs). Before that, there was no specific ..

RBI relaxes norms for FPI investments in corporate debt securities

The Reserve Bank on Thursday relaxed norms for investments by foreign portfolio investors in corporate debt securities through the general route by withdrawing certain requirements. At present, investments by FPIs in corporate debt securities through the general route are subject to the short-term investment and concentration limit. "On a review, and with a view to providing greater ease of investment to FPIs, it has been decided to withdraw the requirement for investments by FPIs in corporate debt securities to comply with the short-term investment limit and the concentration limit," the RBI said in a circular. General route 1 for investment in government and corporate debt securities by FPIs, subject to specified investment limits and macroprudential limits.

Sebi may extend relief to NCDs from sending physical financial statements

Markets regulator Sebi on Monday proposed limited relaxation to issuers of listed non-convertible debt securities from the requirement to send hard copies of key financial documents to investors. In its consultation paper, the regulator has proposed extending an exemption pertaining to Regulation 58(1)(b), which mandates sending hard copies of financial statements and related documents to holders of non-convertible securities who have not registered their email addresses. The move is in line with the Ministry of Corporate Affairs' (MCA) decision to extend similar relaxations until September 30, 2025. Based on the MCA's extension and stakeholder requests, Sebi proposed "no penal" action for entities having listed non-convertible securities for not sending physical copies of financial statements, including the board's report, the auditor's report and other documents. Sebi said that entities having listed non-convertible securities and have not sent hard copy of statement to those ...

Hybrid funds: Low risk, high returns; experts explain who should invest

Through hybrid mutual funds, investors can not only benefit from the potential market growth but also reduce their risk by investing in debt securities

Market regulator Sebi warns against unregistered online debt platforms

The platforms are offering unsecured debt securities, which are not backed by any collateral and carry higher risk

Sebi relaxes prior order of ban on Axis Capital managing debt securities

Securities and Exchange Board of India, in an interim September order, had banned Axis Capital from acting as a banker for new debt issues, alleging violation of rules

Sebi proposes Rs 1 cr minimum investment, demat form for securitisation

Markets regulator Sebi has proposed a minimum ticket size or investment threshold of Rs 1 crore for the RBI-regulated originators and unregulated entities engaged in securitisation activities. The proposal also introduced limitations on the number of investors in private placements, allowing securitized debt instruments (SDIs) issued privately to be offered to a maximum of 200 investors. If this limit is exceeded, the issuance must be classified as a public issue. Public offers should remain open for a minimum of three days and a maximum of 10 days, with advertisement requirements aligned with Sebi's regulations for non-convertible securities. Additionally, the regulator has suggested that all securitized debt instruments should be issued and transferred exclusively in demat form. SDIs are financial products created by pooling together various types of debt -- such as loans, mortgages, or receivables -- and then selling them as securities to investors. This process, known as ...

Sebi clarifies on 3-in-1 accounts usage for online public issue application

Markets regulator Sebi on Friday clarified that investors can continue using 3-in-1 accounts to apply online for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitised debt instruments. This is in addition to the existing modes of application, Sebi said in a circular. A three-in-one trading account combines a savings account, a demat account, and a trading account into a single integrated solution. In this case, the clients would have their funds in their bank account, earning interest on the cash balances. The clarification came after Sebi received feedback that there is a need to explicitly specify the usage of 3-in-1 type accounts for making an application in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments. Last month, Sebi's board approved a proposal whereby, in addition to the current mode of trading, the qualified st

Sebi mandates UPI payment for public issue applications of debt securities

To streamline the application process for public issues of debt securities, markets regulator Sebi on Tuesday asked individual investors applying for amounts up to Rs 5 lakh through intermediaries to use only UPI to block funds. Further, investors will continue to have the choice of availing other methods like applying through Self-Certified Syndicate Banks or the stock exchange platform for making applications, Sebi said in its circular. These provisions will apply to public issues of debt securities starting from November 1. The move is aimed at streamlining and aligning the process of applying in the public issue of debt securities, non-convertible redeemable preference shares, municipal debt securities and securitised debt instruments with that of the public issue of equity shares and convertibles. "It has been decided that all individual investors applying in public issues of such securities through intermediaries (viz. syndicate members, registered stock brokers, registrar to

Sebi amends rules to streamline public issuance of debt securities

Markets regulator Sebi has amended rules to streamline the process for public issuance of debt securities aimed at providing faster access to funds for such issuers. Under the amended rules, Sebi has reduced the period for seeking public comments on the draft offer documents from 7 working days to 1 day for issuers whose specified securities are already listed and 5 days for other issuers. "The issuers whose specified securities are listed on a recognised stock exchange having nationwide trading terminals shall post the draft offer document filed with stock exchange(s) for one day immediately after the date of filing the draft offer document with stock exchange(s)," the regulator said in a notification. Also, the minimum subscription period has been cut from 3 to 2 working days. Further, in case of revision in the price band or yield, the bidding period disclosed in the offer documents, can be extended by one working day instead of three working days. The new rules are aimed at ...

Govt bond yields steady as traders await key data, Friday's debt sale

The benchmark 10-year yield ended at 6.8637 per cent, compared with its previous close of 6.8605 per cent

'A red herring': Adani Group scraps Hindenburg's fresh allegations

In a statement to the stock exchanges on Sunday, an Adani group spokesperson said the latest allegations by Hindenburg are malicious, mischievous, and manipulative

Vedanta Group mandates JPMorgan to arrange $300 million India bond

A Vedanta spokesperson said the group continues to exercise refinancing and capital-raising activities from diverse sources as it seeks to improve its debt and cash profile

Inclusion in global bond indices to up foreign interest in corp debt: Buch

The inclusion of the India in the global bond indices is also expected to increase the interest of investors in corporate paper, Sebi Chairperson Madhabi Puri Buch said here on Wednesday. Speaking at a research conference organised by Sebi and its education-focused capacity-building body NISM, Buch said the regulator will further reduce the minimum investment size of bets on real estate investments trusts and infrastructure investment trusts to ensure that common people are able to take bets on such assets. "We are all delighted that now, government of India bonds will be part of the global indices," Buch said. "We are expecting that on the back of the inclusion of the sovereign debt on the global indices, there will be a significant interest in corporate debt," she added. J P Morgan and Bloomberg have included securities issued by the Indian government to take care of its funds in their indices, which is expected to lead to inflow of up to USD 40 billion into Indian debt from fore

Hybrid mutual funds scheme gain popularity, attract Rs 20,634 crore in Jan

Hybrid mutual fund schemes have been gaining popularity among investors, attracting Rs 20,634 crore in January, marking a 37 per cent surge from the previous month, largely due to their appeal as an alternative investment option post-change in taxation laws for debt funds. With this, total inflow in the category reached Rs 1.21 lakh crore in the April-January period of the current financial year (FY24). However, hybrid schemes saw outflow in the same period of the preceding financial year. Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as gold. The category has been attracting regular inflows since April 2023, after a change in taxation for debt funds that kicked off in the same month. Before that, the segment saw a net withdrawal of Rs 12,372 crore in March last year. According to the latest data with the Association of Mutual Funds in India (Amfi), hybrid schemes witnessed an

FPIs investment in debt market over 6-year high at Rs 19,800 cr in January

Foreign Portfolio Investors (FPIs) have injected over Rs 19,800 crore in the country's debt market in January, making it the highest monthly inflow in more than six years, on the back of inclusion of Indian government bonds in the JP Morgan Index. On the other hand, they pulled out Indian equities worth Rs 25,743 crore last month owing to surging bond yield in the US. According to the data with the depositories, FPIs made a net investment of Rs 19,836 crore in the debt markets in January. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. Before this, FPIs injected Rs 18,302 crore in the debt market in December, Rs 14,860 crore in November, and Rs 6,381 crore in October. "Indian fixed income markets witnessed robust net inflows from FPIs to the tune of USD 2.39 billion in January on the back of inclusion of Indian government bonds in the JP Morgan Index," Himanshu Srivastava, Associate Director- Manager Research, Morningstar Investment Research India, .

Sebi renews recognition to AMC Repo Clearing for 1 yr to clear transactions

The regulator has granted renewal of recognition for one year starting from January 17, 2024 till January 16, 2025, according to a notification uploaded on Sebi's website on Tuesday

IFSCA forms committee on transition finance to formulate framework

The committee has been tasked to assess the trends in the segment and identify the best practices for transition finance in India by 2047