SEBI proposes exempting listed issuers from mandatory appointment of merchant bankers for small-value private placements under Rs.10,000.
Merchant Banker Exemption Proposed for Small-Value Debt Private Placements
On September 10, 2026, SEBI proposed an exemption for eligible listed issuers from the mandatory requirement of appointing a merchant banker for small-value debt private placements not exceeding Rs.10,000. This proposal aims to reduce regulatory burdens for smaller issuers.
The rationale behind this exemption is to streamline the issuance process for small-value placements, fostering greater accessibility and participation in the securities market. This move could potentially facilitate capital-raising efforts for numerous eligible entities.
Corporate lawyers must pay close attention to this proposal, as it could lead to a surge in small-value debt placements and change the landscape of private fundraising within the Indian securities market.
