On Oct. 16, IND SEBI introduced liquidity window facility for investors.
IND SEBI introduced liquidity window for investors in debt securities through stock exchange mechanisms, enhancing liquidity in the corporate bond market.
Liquidity Window Facility
Issuers may provide the liquidity window facility, at their discretion, at the time of issuing debt securities; it applies to both public issues and private placements.
Can opt to provide liquidity window using put options, available to eligible investors.
Liquidity window requires approval of issuer's board and oversight by stakeholders relationship committee or the board in case of entities with only listed debt securities.
The facility is available only to investors holding debt securities in demat form, with a minimum of 10% of issue size eligible for liquidity window, as determined by issuer.
The liquidity window will be open for three working days and can operate on a monthly or quarterly basis; notification to investors will be provided annually.
Debt securities will be valued one day prior to opening of window, payments must be made within one working day after window closes; settlement will occur on T+4 day.
Issuers can sell or cancel debt securities from the window within 45 days of closure.
Must report the outcome of liquidity window to stock exchanges, depositories within 3 working days, disclose details of debt securities eligible for the facility on their website.
