The press release summarises the purpose of the new regulations as follows:
“[I]t is proposed to simplify the primary debt market issuance process with a view to developing a vibrant, dynamic and transparent corporate debt market in the country. Simplification of the process is expected to make primary debt issuance cost effective and less time consuming.The paper makes provisions for e-issuances of corporate debt and has proposals for introducing simplified listing requirements of debt for already listed issuer.”
Some of the major features of the draft regulations include rationalization of disclosure requirements, enhanced responsibilities to merchant bankers for exercising due diligence and issuance of certificates in regard to new issuances and mandatory listing of private placement of debt under Section 67(3) of Companies Act.
The paper states that while due diligence, proper disclosures and credit rating will be key elements of corporate debt issuances, these will be ensured by SEBI mainly through certifications issued by the merchant bankers, although the draft offer documents will be filed with SEBI and placed on the SEBI website (and of the exchange) for a period of seven working days.”
Also, see news reports in the Economic Times and Business Standard.