Sebi proposes a liquidity window facility for corporate bond investors, enabling put options for early redemption.
Securities and Exchange Board of India (Sebi) proposes liquidity window facility for bond investors to enhance liquidity in the corporate bond market, particularly for retail investors. Facility allows issuers to offer put options for investors to sell debt securities before maturity. Sebi seeks public comments on the draft circular, with conditions such as issuer obtaining board approval and monitoring by stakeholders or designated committees. Issuers must report securities redeemed during each liquidity window period and notify investors of its availability.
August 17, 2024
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