SEBI Proposal: Bond Incentives to Draw Retail Investors
Why in the news
The regulator wants more small investors in company bonds and floated sweeter terms for chosen groups.
Key facts
- Precedent: in 2024, discounts for retail investors in Offers for Sale (OFS) were allowed.
- Issuance has fallen sharply; retail interest is low due to lower returns, unfamiliarity and perceived complexity.
| Term | Meaning |
|---|---|
| Corporate bond | Company debt security |
| Coupon rate | Interest paid to bondholders |
| Retail investor | Individual small investor |
| OFS | Existing shareholders sell shares to public |
Expected impact
- Wider participation, revived public debt fundraising, better liquidity and depth.
Exam angle
- Proposer: SEBI.
- Terms: coupon rate, OFS.