6 months ago
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Markets regulator SEBI connected Monday projected a model to trim the compliance load of companies with ample debts, by raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to ₹5,000 crore from the existent ₹1,000 crore.
The determination would trim the fig of entities classified arsenic HVDLEs from 137 to 48, efficaciously bringing down astir 64% of companies presently falling nether the category, SEBI said successful its consultation paper.
The connection aims to trim the compliance load and beforehand easiness of doing business.
Corporate governance norms for HVDLEs were archetypal introduced successful September 2021, connected a comply-or-explain ground until March 31, 2025, and became mandatory from April 2025. These norms use to each entities with listed outstanding non-convertible indebtedness securities of ₹1,000 crore oregon more.
Following the rollout of these rules, respective marketplace participants approached SEBI seeking a higher threshold for classification. Once designated arsenic an HVDLE, a institution is required to comply with governance standards akin to those of equity-listed firms, including the submission of quarterly governance reports, yearly secretarial compliance reports, and adherence to committee creation norms.
