SEBI had vide its Circular dt: November 26, 2018 (for equity listed entities) and SEBI Circular dt: August 10, 2021 (‘For debt listed entities only’) had brought into existence a new category of listed companies. These entities were termed as ‘Large Corporates’. This terming of ‘Large Corporates’ were based on certain criteria specified in these circulars which are required to be checked at the end of every financial year and a declaration in this regard needs to be given.
Large Corporates had to mandatorily fund 25% of their incremental funding requirements through the issue of debt securities. This compliance is required to be done within a period of two financial years. If Large Corporates are unable to fund their incremental borrowing requirements through debt market, then they are subject to penalty as specified in the respective circulars.
SEBI had received representations to provide additional time to comply with these requirements. Accordingly, SEBI in its Board Meeting held on March 29, 2023 approved this granting of an additional one year time. SEBI has now vide its circulars dt: March 31, 2023 provided an additional time-limit of one year to comply with this requirement. So now Large Corporates who had failed to fulfill their 25% of additional funding requirement by the issue of debt securities till FY 2023 will now have an additional one year (i.e. FY 2024) to fulfill the same.
Copy of the above circular can be accessed at the below-mentioned link:
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