The regulator of capital markets in India, i.e., SEBI may soon enable private equity firms to o...
The Securities and Exchange Board of India recently issued the SEBI (LODR) (Fifth Amendment) Regulations to amend the SEBI (LODR) Regulations of 2015. Among the amendments, SEBI made it mandatory for all high value debt listed entities to have directors and officers insurance policy for their independent directors.
SEBI notified of the various amendments where various sub-regulations, provisos were inserted and substituted as well.
The provisions of these regulations which was applicable to listed entities on the basis of criterion of value of the outstanding listed debt securities will continue to apply to such entities even if they fall below thresholds as specified in sub-regulation (1A) of regulation 15.
The provisions of this regulation & regulation 16 to 27 of this chapter will apply to listed entity having listed its Non-convertible debt securities and having an outstanding value of listed Non-convertible debt securities of 500 crore rupees and above-
Provided that if an entity has listed its Non-convertible debt securities triggers the specified threshold of 500 crore rupees during the year, it will have to ensure compliance with these provisions within 6 months from the date of such trigger-
Provided further that the provisions will apply to the high value debt listed entity on a comply/explain basis until 31 March 2023 and mandatorily thereafter.
The provisions of this regulation will apply to:
“Provided that a high value debt listed entity would submit such disclosures with its standalone financial results for the half year”.
A high value debt listed entity would undertake DO insurance for all its independent directors for such sum assured and for risks as determined by the board of directors. DO insurance or Directors and Officers Insurance is essential in safeguarding directors and officers from any damage from wrongful activities. It is useful when there is an establishment of new board of directors.
Other Amendments in Brief
You can refer the document (SEBI (LODR) (Fifth Amendment)) attached with this article for more accurate interpretation.1631098532703
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