Sebi Eases Compliance for High Value Debt Entities

Sebi suggests raising the threshold for High Value Debt Listed Entities to Rs 1,000 crore. A proposed sunset clause could end governance obligations if debts fall under this for a period. The move aims to reduce compliance burdens and streamline corporate governance.

Sebi, India's markets regulator, has proposed increasing the threshold for High Value Debt Listed Entities (HVDLEs) from Rs 500 crore to Rs 1,000 crore to ease compliance requirements. Currently, entities with outstanding listed non-convertible debt of Rs 500 crore or more are classified as HVDLEs.

The consultation paper also suggests a sunset clause ending governance obligations if a HVDLE's outstanding debt falls below the threshold for a specified time. This could provide more operational flexibility for entities in this category.

Additionally, Sebi recommends a dedicated chapter in LODR (Listing Obligations and Disclosure Requirements) Regulations to focus on HVDLE corporate governance norms. Other proposals include optional Business Responsibility and Sustainability Reporting, governance reports in XBRL format, and aligning HVDLE reporting with equity-listed entities.

(With inputs from agencies.)