Sebi proposes to introduce liquidity window facility for bond investors

Sebi has proposed to introduce a new liquidity window facility for investors in debt securities through the stock exchange mechanism, a move aimed to enhance liquidity in the corporate bond market, particularly for retail investors. In its draft circular released on Friday, Sebi proposed that the liquidity window facility seeks to mitigate the issue by providing a regulated mechanism for issuers to offer put options on debt securities at pre-specified dates or intervals. The facility will allow issuers to provide put options to investors, enabling them to sell their debt securities back to the issuer before maturity. It can be provided only for prospective issuances of debt securities through public issue process or on a private placement basis (proposed to be listed). The Securities and Exchange Board of India (Sebi) has invited public comments on the draft circular till September 6. As per the circular, Sebi said "an entity issuing debt securities, which are proposed to be listed
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