The Securities and Exchange Board of India (SEBI) on October 20, 2023, issued a circular for Ease of doing business and development of corporate bond markets and revision in the framework for fundraising by the issuance of debt securities by large corporate
This circular shall come into force with immediate effect and shall replace the present Chapter XII of the NCS Master Circular w.e.f. the FY 2025.
The following has been stated namely: -
• It states that this framework is applicable with effect from April 01, 2024, for LCs following April-March as their financial year. This framework is applicable with effect from January 01, 2024, for LCs which follow January-Decembers their financial year
• It states that this framework shall be applicable for all listed entities (except for Scheduled Commercial Banks), which as on the last day of the FY (i.e. March 31 or December 31) namely: -
a) Listed entities That have their specified securities or debt securities or non-convertible redeemable preference shares listed on recognized Stock Exchanges in terms of SEBI Regulations, (LODR Regulations)
b) Listed entities having outstanding long-term borrowings of Rs.1000 crore or above.
c) Listed entities having a credit rating of "AA”/ “AA+”/AAA", where the credit rating relates to the unsupported bank borrowing or plain vanilla bonds of an entity, which have no structuring/ support built in.
d) It further states that in case a listed entity has multiple ratings from multiple rating agencies, the highest of such ratings shall be considered for the purpose of this framework
• This Circular is available on the SEBI website at www.sebi.gov.in under “Legal Framework”
[Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172]
