Modification in the conditions specified for reduction in denomination of debt securities
Summary
This circular modifies the conditions for issuing debt securities and non-convertible redeemable preference shares at a reduced face value of Rs. 10,000. It explicitly permits zero coupon debt securities to be issued under this scheme, removing the previous requirement that such instruments must be interest-bearing. The amendment applies to all private placement issues proposed to be listed from the date of issuance.
Text
Clause 1.3 of Chapter V of the NCS Master circular dated October 15, 2025 shall be partially modified to allow zero coupon debt security with a fixed maturity, without any structured obligations.
The issuer shall be eligible to issue debt security at a reduced face value which may be either interest bearing or zero interest bearing security.
The provisions of this circular shall be applicable to all issues of debt securities, on private placement basis that are proposed to be listed from the date of issuance of this circular.
The Stock Exchanges, Clearing Corporations and Depositories are directed to take necessary steps, amend bye-laws, and disseminate the circular to market participants.
The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
Source: SecMarx — Modification in the conditions specified for reduction in denomination of debt securities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.