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This circular introduces a Liquidity Window facility framework for investors in debt securities through the stock exchange mechanism. Key points: Issuers listing debt securities may provide a Liquidity Window facility allowing eligible investors to exercise put options on pre-specified dates. The facility aims to enhance liquidity for investors, especially retail investors. Eligibility criteria, limits, valuation methodology, disclosure requirements, and operational guidelines are outlined. Issuers must obtain board approval, ensure transparency, monitor implementation, and comply with risk management norms. The facility is applicable for prospective debt security issuances from November 1, 2024. Detailed provisions govern aggregate limits, sub-limits per window, liquidity window periods, modes of exercising put options, valuation, settlement, reporting, and disclosures on issuer and exchange websites. The circular enables a uniform framework for issuers to adopt the Liquidity Window facility, enhancing investor participation in the corporate bond market.
This circular introduces a Liquidity Window facility framework for investors in debt securities through the stock exchange mechanism. Key points: Issuers listing debt securities may provide a Liquidity Window facility allowing eligible investors to exercise put options on pre-specified dates. The facility aims to enhance liquidity for investors, especially retail investors. Eligibility criteria, limits, valuation methodology, disclosure requirements, and operational guidelines are outlined. Issuers must obtain board approval, ensure transparency, monitor implementation, and comply with risk management norms. The facility is applicable for prospective debt security issuances from November 1, 2024. Detailed provisions govern aggregate limits, sub-limits per window, liquidity window periods, modes of exercising put options, valuation, settlement, reporting, and disclosures on issuer and exchange websites. The circular enables a uniform framework for issuers to adopt the Liquidity Window facility, enhancing investor participation in the corporate bond market.
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