New Delhi, Sept 24: Securities and Exchange Board of India will soon come up with a set of stringent guidelines on private placement of debt issues as part of efforts to protect investors' interest and bring in transparency in the market. "We will soon come up with the guidelines on private placement of corporate debts," Sebi senior executive director, Pratip Kar, told reporters here today.

The move follows a flurry of private placement of corporate debt papers by companies last fiscal, most of which had not disclosed financial positions. Sebi's secondary market advisory committee, headed by R H Patil, has already issued a draft on private placement of corporate debts and invited public comments.

The committee has recommended a slew of measures to protect the investors' interest and at the same time impart a high degree of transparency.

According to the recommendation of the Sebi committee, both listed and unlisted companies intending to raise debt either through private placement or public issue, should make "exhaustive disclosures" of their financial position, as required under Companies Act, Sebi guidelines and listing agreements with stock exchanges. Bureau Report