The Securities and Exchange Board of India (SEBI) on August 27, 2026, issued a Consultation Paper – Exemption from Merchant Banker Appointment for Small-Value Debt.
The following has been stated: -
•SEBI proposes exempting eligible listed issuers from mandatory merchant banker appointment for ₹10,000 face-value debt securities/NCRPS issued through private placement.
•The exemption would apply to issuers regulated by SEBI, RBI, IRDAI or PFRDA, listed for at least one year, with no pending SEBI/Stock Exchange penalties.
•Issuers must have no specified defaults during the last three financial years and the current financial year, supported by an auditor’s certificate; securities must be senior, secured and rated AA- or above.
•Public comments are invited until September 17, 2026; the draft circular proposes immediate applicability upon issuance.
