Now, liquidity window facility for investors in debt securities

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The Securities and Exchange Board of India (Sebi) on Wednesday evening introduced a liquidity window facility for investors in the debt securities through a stock exchange mechanism..

The liquidity window facility allows investors holding listed debt securities to sell them back to the issuer using a put option on specific dates, ensuring liquidity...

This facility, available from November 1, would be of immense utility to investors, especially retail investors, and could serve to enhance their investment in such debt securities, Sebi said in a circular...

This initiative will encourage more retail bond investment via the SEBI-regulated online bond platforms as investors will now have a backstop measure to sell bonds if they require liquidity or funds...

SEBI is providing investors a series of put options targeted mainly for retail investors at a discount to the prevailing market price, Vishal Goenka, co-founder of IndiaBonds.com, said..