SEBI Streamlines Application Process for Public Debt Securities

Markets regulator SEBI has mandated individual investors using intermediaries to apply for public issues of debt securities amounts up to Rs 5 lakh only through UPI starting November 1. The move aims to streamline the process, making it more efficient and aligned with equity shares and convertibles issuance procedures.

In a bid to streamline the application process for public issues of debt securities, the Securities and Exchange Board of India (SEBI) announced new regulations on Tuesday. The market regulator has mandated that individual investors applying for amounts up to Rs 5 lakh through intermediaries must use UPI for blocking funds.

Despite the new UPI requirement, SEBI assured that investors still have the option to use other methods such as Self-Certified Syndicate Banks or the stock exchange platform for applications, according to the circular.

Beginning November 1, these provisions will be applicable to public issues of debt securities. The initiative aims to align the process of applying for such securities—including non-convertible redeemable preference shares, municipal debt securities, and securitized debt instruments—with that of equity shares and convertibles. Last week, SEBI also amended rules to streamline the public issuance process for debt securities by reducing the period for seeking public comments and shortening the subscription period.

(With inputs from agencies.)