The Bar Council of India does not permit advertisement or solicitation by advocates in any form or manner. By accessing this website, www.khaitanco.com, you acknowledge and confirm that you are seeking information relating to Khaitan & Co of your own accord and that there has been no form of solicitation, advertisement or inducement by Khaitan & Co or its members. The content of this website is for informational purposes only and should not be interpreted as soliciting or advertisement. No material/information provided on this website should be construed as legal advice. Khaitan & Co shall not be liable for consequences of any action taken by relying on the material/information provided on this website. The contents of this website are the intellectual property of Khaitan & Co.

Please accept the above


See all results for ""

Denomination for listed debt securities reduced


In order to encourage investments by non-institutional investors in the corporate bond market, Securities and Exchange Board of India (SEBI) vide its circular no. SEBI/HO/DDHS/P/CIR/2022/00144, dated 28 October 2022, for Reduction in denomination for debt-securities and non-convertible redeemable preference shares (Circular), has amended the operational circular dated 10 August 2021 for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper (Operational Circular) to reduce the restriction on minimum face value of listed non-convertible debt securities and redeemable preference shares to be issued on private placement basis from INR 10 lakhs to INR 1 lakh.

With respect to the applicability of the Circular, SEBI has clarified that the provisions of the Circular shall be applicable to all listed debt issuances on or after 1 January 2023. With respect to shelf placement memorandums which are valid as on 1 January 2023, the Circular has clarified that the issuer will be given an option while raising funds through tranche placement memorandum, to keep the face value at INR 10 lakh or INR 1 Lakh, provided that a necessary addendum to the shelf placement memorandum has been issued by the issuer.


This move by the regulator has been pursuant to the receipt of representations from various market participants, including issuers, requesting for review of the said denominations. Further, the high-ticket size was considered to be a deterrent for the non-institutional investors which restricts their ability to access the market for corporate bonds. Accordingly, the lower denomination with the intent of facilitating more investors to participate and in turn enhancing the liquidity in the corporate bond market is a positive move to increase participation of non-institutional investors.

-     Manisha Shroff (Partner), Nikunj Mehta (Associate) Chhavishree Somani (Associate)

For any queries please contact: editors@khaitanco.com

Manisha Shroff (partners)

We have updated our Privacy Policy, which provides details of how we process your personal data and apply security measures. We will continue to communicate with you based on the information available with us. You may choose to unsubscribe from our communications at any time by clicking here.

For private circulation only

The contents of this email are for informational purposes only and for the reader’s personal non-commercial use. The views expressed are not the professional views of Khaitan & Co and do not constitute legal advice. The contents are intended, but not guaranteed, to be correct, complete, or up to date. Khaitan & Co disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident or any other cause.

© 2021 Khaitan & Co. All rights reserved.


One Forbes
3rd & 4th Floors, No. 1
Dr. V. B. Gandhi Marg
Fort, Mumbai 400 001


119/65, First Floor
Dr Radhakrishnan Salai
Chennai 600 004,


Max Towers
7th & 8th Floors
Sector 16B, Noida
Gautam Buddh Nagar
201 301 India


Ocean Financial Centre
#37-02 10 Collyer
37th Floor Quay
Raffles Place 049315,