The Securities and Exchange Board of India (SEBI) remains an integral entity in shaping the financial markets of India. Its guidelines and circulars continually mold the ecosystem, making it more robust and aligned with the evolving economic landscape. One of the recent circulars, SEBI\/HO\/DDHS\/DDHS-RACPOD1\/P\/CIR\/2023\/172 dated October 19, 2023, brings to light the revisions made to the framework concerning the fund-raising by issuance of debt securities by large corporates. Let’s delve deep into the essence of this directive.<\/p>\n\n\n\n
SEBI, in its effort to develop corporate bond markets and ease business conduct, had previously implemented Regulation 50B of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations) paired with Chapter XII of the NCS Master Circular. The directive obliged large corporates (LCs) to secure at least 25% of their fresh borrowings during a fiscal year through the issuance of debt securities. This norm was slated to be operational over a successive span of three years, starting from the Financial Year 2022.<\/p>\n\n\n\n
Acknowledging the prevailing market conditions and in response to the feedback from market participants, SEBI deemed it fit to make certain alterations to the framework governing fund-raising through debt securities issuance by LCs.<\/p>\n\n\n\n
3.1 Timeline<\/strong>:<\/p>\n\n\n\n 3.2 Entities Under the Purview<\/strong>: The revised framework will be operational for:<\/p>\n\n\n\n 4.1 A listed entity adhering to the aforementioned criteria (paragraph 3.2) will be deemed as a \u201cLarge Corporate\u201d (LC).<\/p>\n\n\n\n SEBI\u2019s revised framework signifies its adaptive approach to market dynamics and stakeholder feedback. By offering clarity and revising benchmarks, it further underlines its commitment to facilitate business operations while ensuring financial market stability. The move is expected to refine the debt market, striking a balance between corporate needs and market security. As businesses and investors navigate this revised landscape, SEBI\u2019s continued oversight ensures that India’s corporate bond market remains vibrant, transparent, and efficient.<\/p>\n\n\nEase-of-doing-business-and-development-of-corporate-bond-markets- The Securities and Exchange Board of India (SEBI) remains an integral entity in shaping the financial markets of India. Its guidelines and circulars continually mold the ecosystem, making it more robust and aligned with the evolving economic landscape. One of the recent circulars, SEBI\/HO\/DDHS\/DDHS-RACPOD1\/P\/CIR\/2023\/172 dated October 19, 2023, brings to light the revisions made to […]<\/p>\n","protected":false},"author":4,"featured_media":79107,"parent":76105,"menu_order":0,"template":"","format":"standard","meta":[],"categories":[11309],"tags":[2181],"acf":{"service_id":"215"},"yoast_head":"\n\n
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Definition of ‘Large Corporate’:<\/h2>\n\n\n\n
Conclusion:<\/h2>\n\n\n\n