Brief Overview:
SEBI is proposing to increase the threshold of outstanding debt of more than INR 1,000 crores to more than INR 5,000 crores. This will lead to lesser entities qualifying as High Value Debt Listed Entity (“HVDLE”) leading to lesser burden of corporate governance for a lot of them.
Technical Details:
1) SEBI’s proposal for the enhancement in the limit of outstanding debt, from INR 1,000 crore to INR 5000 crore to qualify as an HVDLE will lead to more than 60% of entities to cease being an HVDLE and thus attract companies to raise funds through listed debt securities.
2) SEBI further proposes to make amendments in the corporate governance requirements by the HVDLEs’ in relation to the directorship, nominee directors, timeline to fill up vacancies, obligations with respect to independent directors and related party transactions.
Public comments are open until November 17, 2025, via SEBI’s consultation portal.
For further details, please see:
SEBI Consultation Paper – HVDLEs
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