Description

BSE updates operational guidelines for its Electronic Book Provider platform BSEBOND, introducing changes to anchor investor allocations and confirmation processes.

Summary

BSE has updated the operational guidelines for participation on BSEBOND (Electronic Book Provider platform) effective August 18, 2025. The changes introduce new provisions for anchor investor allocations based on instrument ratings and confirmation requirements, following SEBI’s circular dated May 16, 2025.

Key Points

  • Updated guidelines effective August 18, 2025 for all BSE BOND transactions
  • Anchor investor allocation quantum now tied to instrument rating
  • Anchor investors must confirm allocation on BSE BOND portal by 5 PM on T-1
  • Unconfirmed amounts will be added back to base issue size
  • Guidelines apply to transactions opening for bidding from August 20, 2025 onwards

Regulatory Changes

  • SEBI circular SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/0000000073 dated May 16, 2025 introduced EBP framework revisions
  • Revision in Chapter VI and Chapter VII of Operational Circular for Issue and Listing of Non-convertible Securities
  • New anchor investor confirmation mechanism implemented

Compliance Requirements

  • All participants/market intermediaries registered on BSE’s EBP platform must comply
  • Anchor investors must confirm allocations by 5 PM on T-1 day
  • Applies to all debt securities, NCRPS, securitized debt instruments, municipal debt securities and commercial paper
  • Mandatory for private placements of Rs. 20 crore or more
  • Optional for commercial paper, certificates of deposits, and smaller issues

Important Dates

  • Guidelines issued: August 14, 2025
  • Effective date: August 18, 2025
  • Applicable to transactions opening for bidding: August 20, 2025 onwards
  • Anchor investor confirmation deadline: 5 PM on T-1

Impact Assessment

The updated guidelines will affect debt market participants by introducing stricter confirmation requirements for anchor investors. This may lead to better price discovery and allocation efficiency but could also result in reduced participation if anchor investors fail to confirm allocations timely. Market intermediaries need to update their processes to comply with the new T-1 confirmation requirements.

Impact Justification

Operational changes to EBP platform affecting debt market participants and anchor investor processes