Debt securities are essentially securities, or financial instruments, where an entity receives a loan from an investor and has to pay that amount along with added interest back to the investor. This research paper analyses the issue of debt securities, and its legal perspective. This research paper deals with the definition and characteristics of debt securities, and various types of debt securities such as government securities, commercial paper, corporate securities, and call money, followed by the principal role the Securities and Exchange Board of India plays in the sphere of debt securities, with regards to safeguarding the interest of investors and expanding capital markets by means of legislation and rules. This paper also deals with the ‘private placement’ of securities, that is, transactions of securities that are publicly disclosed. Moreover, the NCS Regulations have been dealt with, which set down rules for corporations while issuing privately placed debt securities, such as preventing the issuer’s directors from entering the securities market and disallowing fugitive financial offenders from doing the same. The paper then deals with the importance of debt securities in the capital market, with reference to its role in helping the government to acquire funds it needs for development. It gives both public and private initiatives for options for funding as it reduces the stress on institutional finance. It can help in making India’s bank-based finance system stronger by reducing the difficulties faced by banks with regards to the long-term sources of finance. The paper also deals with the various legal perspectives of debt securities and their mandatory issue