The capital markets regulator also stipulated that while the issuers are free to determine the face value for such securities, no invitations for subscription or allotments shall be made for an amount less than Rs10 lakh in any issue. Prescribing guidelines for intermediaries, Sebi has said that only intermediaries regulated by it can sell such securities.

Moreover, the intermediary would need to ensure that the investor understands the risks involved, is capable of taking the risk posed by such securities and shall satisfy itself that the securities are suitable to the risk profile of the investor. Sebi said that, in addition to the mandatory disclosure requirements companies would also need to disclose, in all offer documents, a detailed scenario analysis or a valuation matrix showing graphically, the value of the security under different market conditions.