Sebi mulls over norms on ‘high value debt listed entities’

Highlights

Markets regulator Sebi has proposed raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to Rs1,000 crore from Rs500 crore at present to reduce compliance burdens.

New Delhi: Markets regulator Sebi has proposed raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to Rs1,000 crore from Rs500 crore at present to reduce compliance burdens.

Currently, an entity having outstanding value of listed non-convertible debt securities of Rs500 crore and above are referred to as ‘High Value Debt Listed Entities’.

In its consultation paper, Sebi has proposed introducing a sunset clause that would end governance obligations if an HVDLE’s outstanding debt falls below the threshold for a specified period, providing more flexibility. It has suggested a dedicated chapter within LODR (Listing Obligations and Disclosure Requirements) Regulations focused solely on corporate governance norms for HVDLEs distinguishing them from equity-listed entities. Also, it has been

proposed filing of governance reports in XBRL format, voluntary Business Responsibility and Sustainability Reporting (BRSR), and harmonise HVDLE reporting with equity-listed entities.