What is private placement of bonds?
Aug 29, 05:08

A private placement is a sale of bonds to pre-selected investors and institutions rather than one in the open market. Unlike a public offering, private placement is exempt from filing an offer document with the Securities and Exchange Board of India (SEBI) for its comments. Corporates access the private placement debt market route because of its inherent advantages. First, it is a cost and time-effective method of raising funds. Second, it can be structured to meet the needs of entrepreneurs and investors. Third, private placement has easier compliance formalities. In FY22, Indian firms raised Rs 5.88 lakh crore through private placement of bonds.

Advantages of private placement