Extension of compliance period – Fund raising by large corporates through issuance of debt securities to the extent of 25% of their incremental borrowings in a financial year
Summary
SEBI extends the compliance period for large corporates to raise 25% of incremental borrowings through debt securities from two years to three years. This extension applies to the contiguous block reckoned from Financial Year 2021-22 onwards, responding to market representations. Stock Exchanges are directed to disseminate this information and amend their bye-laws to ensure uniform implementation.
Text
Chapter XII of NCS Operational Circular mandates large corporates to raise minimum 25% of their incremental borrowings in a financial year through issuance of debt securities which has to be met over a contiguous block of two years from Financial Year (FY) 2021-22 onwards.
The contiguous block of two years over which large corporates need to meet the mandatory requirement of raising minimum 25% of their incremental borrowings in a financial year through issuance of debt securities will be extended to a contiguous block of three years reckoned from FY 2021-22 onwards.
The Stock Exchange(s) are directed to bring the provisions of this circular to the notice of the Stock Brokers and also disseminate the same on their websites.
Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above directions in coordination with one another to achieve uniformity in approach and communicate regarding the same to SEBI.
The provisions of paras 2.2 (c) and 2.2 (d) of Chapter XII of the NCS Operational Circular shall be modified accordingly.
This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Extension of compliance period – Fund raising by large corporates through issuance of debt securities to the extent of 25% of their incremental borrowings in a financial year. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.