Sebi's New Incentive Proposal Revives Bond Market Interest
Sebi proposes amendments to allow debt issuers to offer incentives, such as higher coupon rates, to specific investor categories like senior citizens and women. This aims to boost retail participation in public bond markets. Feedback on the proposal is open until November 17.
- Country:
- India
The Securities and Exchange Board of India (Sebi) is proposing a significant amendment to enhance retail involvement in the bond market by allowing debt issuers to offer incentives to certain investor categories. These could include higher coupon rates or discounts specifically for senior citizens, women, and retail subscribers.
Current regulations prevent any kind of incentive offers, limiting issuers to legitimate fees. However, Sebi's new proposal aims to invigorate interest in public debt issuances as it faces a notable decline, from Rs 19,168 crore in FY 2023-24 to Rs 8,149 crore in the current fiscal year.
This initiative looks to mirror benefits seen in other sectors, like higher interest rates on fixed deposits for senior citizens in banks. Public comments on the proposal are welcomed until November 17, signaling Sebi's commitment to enhancing investor diversity in the bond market.
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