The Securities and Exchange Board of India (SEBI) said it has prohibited payment of incentives by a person connected with a public issue of debt securities to a potential investor for making an application for allotment of specified securities.
Some brokers/ distributors were passing on part of their brokerage or commission to the final investors for subscription to such public issue of debt, giving an unfair advantage to some investors adding to the cost of issuance for the company, it said in a circular on its website.