Sebi Enhances EBP Platform: A Game-Changer for Debt Markets

The Securities and Exchange Board of India (Sebi) has mandated the use of the electronic book mechanism for all private placement debt issues of Rs 20 crore or more, expanding its scope to include Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

This strategic move follows recommendations from a working group and public feedback, targeting increased efficiency for the Electronic Book Provider (EBP) platform. The rules now require the EBP platform's use for private placements of various securities, including debt, non-convertible redeemable preference shares (NCRPS), and municipal bonds.

Significantly, Sebi now extends the platform to products like securitised debt instruments and commercial papers for REITs and InvITs. Issuers must submit a placement memorandum and term sheet in advance, ensuring transparency and order by disclosing issue sizes and green shoe options. The EBP platform will publicly update detailed bidding information to enhance market efficiency.

(With inputs from agencies.)