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NSE to offer Electronic Book Mechanism for issuance of debt securities on private placement basis

| | Jun 22, 2016, at 02:10 am
Mumbai,June 21 (IBNS): India's Capital Market regulator The Securities and Exchange Board of India (SEBI) has allowed India's leading stock exchange, the National Stock Exchange of India Limited (NSE) to act as an Electronic Book Provider to facilitate electronic book mechanism for issuance of debt securities on private placement basis.
This new mechanism is aimed at enhancing transparency to discover price.
 
This will be a bidding platform for issuance of debt securities on private placement basis. 
 
The salient features of this mechanism are to steamline procedures for issuance of debt securities on private placement basis and enhance transparency to discover prices. 
 
The new mechanism will be operationalized from July 1. It is a bidding platform and will not function as a trading platform.
 
Main beneficiaries of this mechanism will be issuers, arrangers, sub-arrangers, and participants.
 
The Electronic book mechanism will be mandatory for all private placements of debt securities in primary market with an issue size of Rs.500 crore and above, inclusive of Green shoe option, if any.
 
Presently the issuance of private placement has been made Offline.  The detailed guidelines on electronic book mechanism will be provided subsequently.   

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