Sebi extends compliance period for 3 yrs for large corporates to raise 25% of incremental borrowings via debt mkt
Capital markets regulator Sebi on Friday extended the compliance requirement to three years for 'large corporates' to raise at least 25 per cent of their incremental borrowings through debt securities to a contiguous block from two years at present.
Capital markets regulator Sebi on Friday extended the compliance requirement to three years for 'large corporates' to raise at least 25 per cent of their incremental borrowings through debt securities to a contiguous block from two years at present.
This comes after the board of Sebi approved a proposal in this regard on Wednesday.
Currently, the rules mandate large corporates to mobilise a minimum of 25 per cent of their incremental borrowings in a financial year through the issuance of debt securities which has to be met over a contiguous block of two years.
In a circular, Sebi "decided that the contiguous block of two years over which large corporates need to meet the mandatory requirement of raising minimum 25 per cent of their incremental borrowings in a financial year through issuance of debt securities will be extended to a contiguous block of three years (from the present requirement of two years) reckoned from FY 2021-22 onwards."
In case a large corporate is unable to comply with the requirement, then such entities are required to provide an explanation for such a shortfall to the stock exchanges in a prescribed manner.
The latest decision has taken into account the representations from the market participants and on a review of the matter by the Securities and Exchange Board of India (Sebi).
Large corporates are those that need to have an outstanding long-term borrowing of at least Rs 100 crore; a credit rating of 'AA and above and target to finance themselves with long-term borrowings (above 1 year).
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
04:25 PM IST