SEBI Approves Flexibility in Framework for Large Corporates to Raise Funds via Issuance of Debt Securities

PR No. 21/2023; Dated: 21.09.2023

SEBI in its board meeting has approved a proposal to provide flexibility in the framework for Large Corporates (LCs) to meet incremental financing needs via the issuance of debt securities. A higher monetary threshold has been specified for defining LCs, thereby reducing the number of entities qualifying as LCs.

Further, a removal of penalty has also been approved on LCs which are not able to raise a certain percentage of incremental borrowing from the debt market.

Further, the Board has also approved the proposal to extend the timeline for compliance with enhanced qualification and experience requirements for Investment Advisers.

The Board approved streamlining the framework for credit of unclaimed amounts of investors in listed entities (other than companies, REITS and InvITs) to the Investor Protection and Education Fund (IPEF) and process of refund from the IPEF.

Also, the timeline for compliance with enhanced qualification and experience requirements for investment advisers has been extended.

Based on the representations received from various stakeholders and in view of the emerging landscape of the domain of investment advice, SEBI extended the timeline up to 30.09.2025 to comply with these requirements.

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