The Securities Exchange and Board of India (SEBI) vide circular October 10, 2022, has issued directions pertaining to Electronic Book Provider (EBP) platform. SEBI has conducted discussions with market participants such as issuers, arrangers, investors (e.g., banks, mutual funds), stock exchanges, depositories and at meetings of the Corporate Bonds and Securitization Advisory Committee (CoBoSAC) on the topic.
The circular specifies the issuances which must necessarily be made through EBP, the eligible participants, obligations/ responsibilities of various entities, the provision to an issuer to withdraw offers, the process of bidding and allotment, etc. The other stipulations of the existing EBP framework like threshold limits for applicability, Bidding limits for arrangers, Penalty in case of default etc. have also been modified.
The provisions of this circular will come into effect from January 01, 2023.
