SEBI Allows Zero-Coupon Bonds to Be Issued in Smaller Denominations:
Securities and Exchange Board of India (SEBI) has allowed zero-coupon bonds to be issued in smaller denominations of INR 10,000. Announced on 18 December 2025, this decision is aimed at widening investor participation, improving accessibility to debt instruments, and strengthening India’s corporate bond market. The move aligns with SEBI’s broader objective of deepening financial markets and encouraging retail investment in fixed-income securities.Non-convertible debt securities (NCDs) and non-convertible redeemable preference shares (NCRPS) in India are often issued through private placement, traditionally with high face values that limited retail participation.SEBI had allowed issuers to reduce the face value of such instruments to INR10,000, but only for interest- or dividend-bearing securities with fixed maturity and no structured obligations.This condition effectively excluded zero-coupon bonds, as they do not offer periodic interest payments.
