How Zerodha's Nithin Kamath reacted to SEBI move to cut face value of corporate bonds

SEBI on Tuesday decided to cut the face value of bonds from Rs 1 lakh to Rs 10,000

Nithin Kamath Nithin Kamath

Market regulator SEBI on Tuesday decided to cut the face value of corporate bonds from Rs 1 lakh to Rs 10,000, in a bid to woo retail investors to the debt market.

And now, Zerodha Co-founder Nithin Kamath has welcomed the move, saying investing in bonds are the best investments for most Indians as they give better returns than fixed deposits with lower risk compared to stocks.

Taking to X, Kamath posted, “Companies can now issue bonds with face value of ₹10,000. This is a great move that can help attract retail participation in the bonds. With all the changes in the last few years, SEBI has done an amazing job of making bonds accessible to small investors."

Sebi has also standardised the record date for identifying eligible holders as well as the format of the due diligence certificate provided by the debenture trustee and provided flexibility regarding publication of financial results in newspapers for entities that have listed only non-convertible securities.

The Sebi board has also approved the proposal to provide an option to the issuers to issue non-convertible debentures (NCDs) and non-convertible redeemable preference shares (NCRPS) through private placement mode at a reduced face value of Rs 10,000 along with the requirement to appoint a merchant banker.

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