The Securities and Exchange Board of India (SEBI) on March 31, 2023, issued a circular regarding the Extension of the compliance period –Fundraising by large corporates through the issuance of debt securities to the extent of 25% of their incremental borrowings in a financial year
The following has been stated namely: -
• It states that the Chapter XII of the NCS Operational Circular on ‘Fundraising by the issuance of Debt Securities by Large Corporates’ (LCs Chapter), inter-alia, mandates large corporates to raise a minimum of 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.
• it states that the contiguous block of two years will be extended to a three-year block reckoned from FY 2021-22 onwards.
• The Stock Exchanges are directed to: -
(i) bring the provisions of this circular to the notice of the Stock Brokers and also disseminate the same on their websites.
(ii) make necessary amendments to the relevant bye-laws, rules, and regulations for implementing the above directions in coordination with one another to achieve uniformity in approach and communicate regarding the same to SEBI.
• This Circular is available at www.sebi.gov.in under the link “Legal” >> “Circulars.
[Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/049]
