The Securities and Exchange Board of India (SEBI) on October 07, 2026, notified regarding the exemption from the requirement of mandatory merchant banker appointment for debt issued through private placement by certain listed issuers.
SEBI has amended Clause 1.3 of Chapter V of the NCS Master Circular to permit eligible issuers to issue debt securities or non-convertible redeemable preference shares on private placement basis at a face value of ₹10,000 without appointing a Merchant Banker, subject to specified conditions. The exemption is available to entities regulated by SEBI, RBI, IRDAI or PFRDA, listed for at least one year without pending SEBI/stock exchange penalties, having no defaults during the prescribed period, and issuing senior/unsubordinated debt securities rated at least AA- and secured by a first or pari passu charge; CPSEs, PSUs and Statutory Bodies may issue secured or unsecured securities. Stock exchanges will prescribe operational requirements and monitor compliance.
The amendment is effective immediately, while all other provisions of the NCS Master Circular remain unchanged.
[Notification No. - HO/17/11/24(7)2026-DDHS-POD1/ I/23122/2026]
