SEBI issued a Circular no. CIR/IMD/DF1/48/2016 dated April 21, 2016, with respect to introduction of Electronic Book Mechanism for issuance of debt securities on private placement basis.
The said electronic book mechanism is active since July 01, 2016. Further, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have also been granted approval to act as Electronic Book Provider (EBP). A few issuers have already issued Non-Convertible Debentures (NCDs) on private placement basis through abovementioned EBPs. Even though the issues below Rs. 500 crore through EBP is optional, some issuers have raised such amounts through EBPs. The details pertaining to private placements through EBPs may be viewed on NSE and BSE website.
Many issuers and other participants have raised queries with regards to abovementioned circular. In order to address such queries, FAQs have been prepared and have been put on SEBI Website www.sebi.gov.in under the tab “FAQ”.