SEBI Mandated EBP for all Private Debt Issues above Rs 20 Crore

Current Context: On May 18, 2025, the Securities and Exchange Board of India (SEBI) mandated the use of the Electronic Book Provider (EBP) platform for all private placement debt issues of ₹20 crore or more.

• This move aims to enhance transparency, streamline fundraising, and improve price discovery in the debt market.

Key Highlights:

• Expanded Scope: The EBP platform now covers non-convertible redeemable preference shares (NCRPS), municipal bonds, Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs).
• Mandatory Disclosure: Issuers must submit a placement memorandum and term sheet at least two working days before the issue opens (three days for first-time users).
• Green Shoe Option: The green shoe allocation is capped at five times the base issue size, with past allocations requiring disclosure.
• Anchor Investors: Issuers can reserve up to 30% of the issue for AAA to AA- rated instruments, 40% for A+/A-, and 50% for lower-rated ones. Anchor investors must confirm participation electronically one day before the issue.
• Fair Allotment Process: If multiple bids are received at the same cut-off price, allotments must be made proportionally.
• Public Transparency: The EBP platform must update bidding details and issue-related information by the end of the bidding day or by 1 PM the next day.

Question:

Q.1 What is the minimum issue size for which the use of the Electronic Book Provider (EBP) platform is now mandatory, as per SEBI’s new directive?
a) ₹10 crore
b) ₹15 crore
c) ₹20 crore
d) ₹25 crore

Answer: c) SEBI has made it mandatory for all private placement debt issues of ₹20 crore or more to be routed through the EBP platform to ensure transparency and efficiency.