Brief Overview:

Listed non-convertible debt securities (“NCDs”) including non-convertible redeemable preference shares (“NCRPS”) which are zero interest bearing can now also be issued at a reduced face value of INR 10,000/-. Earlier, this relaxation of reduced face value was available only for interest bearing NCDs and NCRPS.

Technical Details:

The NCDs and NCRPS, whether interest bearing or having zero coupon mechanism can now be issued with a face value of either 1 lakh or 10 thousand.

For issuance at such reduced face value, the conditions for zero coupon listed NCDs and NCRPS remain same as other interest bearing NCDs and NCRPS i.e., (i) such securities shall have a fixed maturity without any structured obligations; (ii) credit enhancements (if any) can only be in the form and nature as set out in the master circular; and (iii) appointment of at least 1 (one) merchant banker.

For further details, please see:

⁠SEBI | Modification in the conditions specified for reduction in denomination of debt securities

For any queries/clarifications, please feel free to ping us and we will be happy to chat: