SEBI eases merchant banker rule for listed issuers raising private debt
CNBC-TV18 2 hrs ago·7 Oct 2026, 1:04 pm
The Securities and Exchange Board of India (SEBI) has introduced a new rule that allows listed companies to raise private debt without appointing a merchant banker. This change applies to issuers who have been listed for at least one year, have no pending compliance penalties, and have a minimum credit rating of AA-. The relaxation is designed to simplify the process for companies with strong track records.
This move is significant for the broader market as it aims to reduce compliance costs and administrative hurdles for eligible firms. By removing the mandatory requirement for a merchant banker in these specific cases, SEBI is encouraging more companies to access private debt markets. This could lead to increased capital raising activity for financially sound issuers, potentially improving their liquidity and financial flexibility.
Investors should monitor which companies take advantage of this new rule and how it impacts their financial health. While this change is generally positive for compliant issuers, it is important to ensure that the underlying credit fundamentals remain strong. Watch for announcements from companies regarding new debt issuances and their subsequent use of funds.
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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