Sebi's cap on fresh issuance of corporate bonds to deepen market

According to the new directive, a maximum of 12 fresh debt securities would be issued in a year

The recent announcement by the Securities Exchange Board of India (Sebi) to restrict the number of different bond issuances by a company to 12 could become a catalyst for deepening the corporate bond market, as well as help improve the repo in corporate bonds, even as issuers would have to maintain considerable discipline in their financial planning. 

The regulator last week capped the maximum number of International Securities Identification Numbers (ISINs) that can be issued in a year to 17; of this, 12 ISINs are allowed for plain-vanilla securities and five more for structured products. 

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