SEBI proposes merchant banker waiver for listed firms' small debt
SEBI just proposed a rule that could let listed companies skip hiring a merchant banker when raising small amounts of debt privately.
The idea, announced today, is to cut down on costs and paperwork; right now, even small debt issues require bringing in a merchant banker, which can be a hassle for frequent or smaller fundraisers.
SEBI seeks comments on eligibility criteria
To get this exemption, companies need to be registered or regulated by a financial sector regulator, have been listed on a recognized stock exchange for at least a year, and have no pending fines or penalties levied by the regulator or the bourses.
Plus, they must show, with an auditor's certificate, that they haven't defaulted in the last three financial years and the current financial year on repayment of deposits or interest payable on them, redemption of non-convertible preference shares or debt securities and interest payable on them, declaration and payment of dividend to shareholders, and repayment of any term loan or interest payable on it.
Stock exchanges will double-check everything before giving the green light.
SEBI is inviting public feedback on this plan until September 17, 2026.