Sebi proposes doubling threshold for 'High Value Debt Listed Entities' to Rs 1,000 crore

Markets regulator Sebi has projected raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to Rs 1,000 crore from Rs 500 crore astatine contiguous to trim compliance burdens. Currently, an entity having outstanding worth of listed non-convertible indebtedness securities of Rs 500 crore and supra are referred to arsenic 'High Value Debt Listed Entities'.

In its consultation paper, Sebi has projected introducing a sunset clause that would extremity governance obligations if an HVDLE's outstanding indebtedness falls beneath the threshold for a specified period, providing much flexibility.

It has suggested a dedicated section wrong LODR (Listing Obligations and Disclosure Requirements) Regulations focused solely connected firm governance norms for HVDLEs distinguishing them from equity-listed entities.

Also, it has been projected filing of governance reports successful XBRL format, voluntary Business Responsibility and Sustainability Reporting (BRSR), and harmonise HVDLE reporting with equity-listed entities.

Further, Sebi has projected relaxation for HVDLEs which are not companies arsenic per the Companies Act, 2013, relaxation with respect to the constitution of the Nomination and Remuneration Committee (NRC), Risk Management Committee (RMC) and Stakeholders Relationship Committee (SRC).

To debar the constitution of aggregate committees by HVDLEs, Sebi has projected that the committee of directors of an HVDLE whitethorn either take to represent NRC/RMC/SRC oregon whitethorn guarantee that the functions of these committees are delegated and discharged by the audit committee.

"It is projected that the threshold of listed outstanding non-convertible securities for recognition of a indebtedness listed entity arsenic HVDLE whitethorn beryllium accrued from Rs 500 crore to Rs 1000 crore," Sebi said successful its consultation insubstantial connected Thursday.

Also, Sebi has projected mounting a headdress connected the full fig of committees a manager tin service on, whether successful equity oregon debt-listed entities. This would assistance successful preventing over-commitment and guarantee they tin fulfil their responsibilities effectively.

It has projected that committee limits for directors should see HVDLEs, on with equity-listed companies, to support investors and guarantee directors person capable clip for each role.

The proposals, portion of firm governance norms, for HVDLEs are aimed astatine promoting easiness of doing concern and the involvement of investors successful specified HVDLEs the Securities and Exchange Board of India (Sebi) has sought nationalist comments till November 15 connected the proposals.