Description
BSE revises operational guidelines for its Electronic Book Provider (EBP) platform BSEBOND, introducing changes to anchor investor allocation, pro-rata allotment, and extending platform access to securitized debt instruments, CPs, CDs, REITs, SM REITs and InvITs.
Summary
BSE has issued updated operational guidelines for participation on BSEBOND (BSE’s Electronic Book Provider platform) effective November 17, 2025. The revisions implement changes mandated by SEBI circular SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/0000000073 dated May 16, 2025, which reviewed EBP platform provisions to increase efficacy and utility. The updated guidelines introduce changes to anchor investor allocation mechanisms, pro-rata allotment processes, and expand platform access to additional instruments including securitized debt instruments, security receipts, commercial papers, certificates of deposit, and units of REITs, SM REITs and InvITs.
Key Points
- Anchor investor allocation quantum based on instrument rating, to be confirmed on BSEBOND portal before 5 PM on T-1
- Unconfirmed anchor investor amounts will be added back to base issue size
- Pro-rata allotment introduced for multiple bids at cut-off coupon/price/spread
- Platform access extended to private placement of securitized debt instruments and security receipts
- Platform access extended to commercial papers (CPs) and certificates of deposit (CDs) on optional basis
- REITs, SM REITs and InvITs can now access EBP platform for private placement of units
- Revisions align with changes to Chapter VI and Chapter VII of the Operational Circular for Issue and Listing of Non-convertible Securities
- Guidelines applicable to all registered participants and market intermediaries accessing BSEBOND
Regulatory Changes
The updated guidelines implement SEBI’s directive to review and enhance the Electronic Book Provider platform framework. Key regulatory changes include:
Anchor Investor Allocation Mechanism: The quantum of allocation to anchor investors is now explicitly linked to the rating of the instrument, requiring confirmation on the BSEBOND portal by 5 PM on T-1 day
Reallocation Process: Any amount not confirmed by anchor investors will be automatically added back to the base issue size, improving capital allocation efficiency
Pro-rata Allotment: Introduction of systematic pro-rata basis allotment when multiple bids exist at cut-off coupon/price/spread (detailed illustration provided in Annexure-B)
Expanded Instrument Coverage: Platform access extended beyond mandatory debt securities and NCRPS to include:
- Securitized debt instruments (optional)
- Security receipts (optional)
- Commercial papers (optional)
- Certificates of deposit (optional)
- Units of REITs, SM REITs and InvITs (optional)
Regulatory Framework: Updates to Chapter VI and Chapter VII of the Operational Circular for Issue and Listing of Non-convertible Securities, Securitized Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper
Compliance Requirements
For Anchor Investors:
- Must confirm allocation quantum on BSEBOND portal before 5 PM on T-1 day
- Allocation based on instrument rating as specified in updated guidelines
For Issuers:
- Private placement of debt securities and NCRPS of Rs. 20 crore or more (single issue inclusive of green shoe option) must use BSEBOND platform (mandatory)
- Municipal debt securities issuances must use BSEBOND platform as per SEBI Municipal Debt Securities Regulations 2015 (mandatory)
- May optionally use BSEBOND for private placement of CPs, CDs, securitized debt instruments, and security receipts
- REITs, SM REITs and InvITs may optionally use platform for unit issuances
For All Participants:
- Complete enrolment process and KYC for BSEBOND platform participation
- Follow prescribed timelines for BSEBOND process
- Adhere to disclosure and documentation requirements for transaction setup
- Comply with platform operating hours and bidding parameters
- Follow procedures for issue initiation, bidding, provisional allotment, and settlement
Platform Access:
- Access BSEBOND platform via https://bond.bseindia.com/
Important Dates
- SEBI Circular Date: May 16, 2025 (SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/0000000073)
- BSE Guidelines Issuance: November 14, 2025
- Effective Date: November 17, 2025 - Guidelines apply to all transactions opening for bidding on BSEBOND from this date onwards
- Anchor Investor Confirmation Deadline: Before 5 PM on T-1 day for each transaction
Impact Assessment
Market Impact:
- Enhanced transparency and efficiency in debt securities issuance through improved anchor allocation mechanism
- Broader market participation through pro-rata allotment for competitive bids
- Increased platform utility with expanded instrument coverage, potentially increasing transaction volumes
- Standardization of private placement processes for multiple instrument types on single platform
Operational Impact:
- Market participants must update internal processes to comply with new anchor investor confirmation requirements
- Issuers gain flexibility to use platform for wider range of instruments including CPs, CDs, and structured products
- REITs, SM REITs and InvITs gain access to standardized electronic platform for unit issuances
- Pro-rata allotment mechanism requires system readiness for proportional allocation calculations
- All participants must familiarize themselves with revised operational procedures
Regulatory Impact:
- Aligns BSE’s EBP platform operations with enhanced SEBI framework
- Improves regulatory oversight of private placement activities through centralized platform
- Standardizes processes across different debt instrument categories
- Enhances investor protection through systematic allocation mechanisms
Impact Justification
Significant changes to BSEBOND platform operations affecting all participants in debt securities issuance, anchor investor allocations, and expanding platform accessibility to new instrument types and entities.