Srei Infra moves regulators for buyback of NCDs from retail investors

Srei Infrastructure has requested Securities and Exchange Board of India (Sebi) and Reserve Bank of India (RBI) to allow buy back of its non-convertible debentures from retail investors.

In a letter to both RBI and Sebi, Srei has said that, “At Srei we would be happy to on tap buy back our NCDs from retail investors as it would prevent interested parties from gaming the system at the expense of investors; offer investors a simple exit route, which would make NCDs more popular among retail investors,” said the letter written by Hemant Kanoria, chairman, Srei Infrastructure to both RBI and Sebi.

According to sources, “the company was apprehensive that a section of market operators have been trying to approach retail investors to sell their existing NCDs at a deep discount, which has prompted Srei to write to the market regulators.”