The Securities and Exchange Board of India (SEBI), on October 31, 2024, issued a Consultation paper on review of provisions of LODR Regulations pertaining to corporate governance norms for High Value Debt Listed entities (HVDLEs).
A consultation paper proposes several corporate governance norms for High Value Debt Listed Entities (HVDLEs), seeking public input on key areas:
Separate Governance Chapter: Establish a dedicated chapter in the LODR Regulations for HVDLE governance.
Threshold Adjustment: Relax thresholds for identifying HVDLEs subject to governance norms.
Sunset Clause: Propose a termination date for these norms.
Non-Company HVDLEs: Offer governance relaxations for HVDLEs not classified as companies under the Companies Act, 2013.
Committee Requirements: Provide relaxations for HVDLEs concerning the Nomination and Remuneration Committee, Risk Management Committee, and Stakeholders Relationship Committee.
Reporting Format: Require compliance reports in XBRL format and align reporting standards with equity-listed entities.
Voluntary BRSR: Allow voluntary Business Responsibility and Sustainability Reports.
Directorship and Committee Memberships: Set limits on directorships, committee memberships, chairpersonships, and related party transactions (RPTs).
Details and consultations on these proposals are covered in Paragraphs 2 to 13 of the paper.
Comments on the Consultation paper may be sent on this link by November 15, 2024.
