SEBI Anchor Investor Limits for Low-Rated Bond Issues Raised
Why in the news
SEBI eased debt placement rules to help low-rated issuers and improve pricing openness.
Anchor limits
| Rating | Limit |
|---|---|
| BBB and below | Up to 50% |
| A+ to A- | 40% |
| Before | 30% for all |
Key facts
- Anchor participation must be disclosed in placement memorandums.
- Anchors confirm electronically by T-1; unconfirmed sums go back to the base issue.
- EBP threshold cut to ₹20 crore.
Benefits
- Helps NBFCs rated below A.
- Arrangers can sell down later; fewer undersubscribed issues.
- Better price discovery.
Exam angle
- Regulator: SEBI; platform: Electronic Book Provider.