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Market regulator Sebi has approved a proposal to provide flexibility to large corporations to meet their financing needs from debt market.

The decision was taken at the board meeting, which was held earlier on Thursday.

A higher monetary threshold has been specified for defining large corporations, thereby reducing the number of such entities.

Further, a removal of penalty has also been approved on large cap companies which are not able to raise a certain percentage of incremental borrowing from the debt market.

Currently, entities qualified as large corporates are required to meet 25% mandatory borrowing from bonds.

Sebi’s board has also decided that compliance with the framework will be met over a contiguous block of three years.

The regulator has approved to dispense with the requirement on large companies for filing a statement identifying itself as a “large corporate” and statement regarding compliance.

Other key decisions
The regulator approved to streamline the framework for credit of unclaimed amounts of investors in listed entities (other than companies, REITS and InvITs) to the Investor Protection and Education Fund (IPEF) and process of refund from the IPEF.

There will be a uniform process of claim for such amounts in a streamlined manner for the ease and convenience of investors.

“Investors may approach the debt listed entity/ REIT/ InvIT to claim their unclaimed amounts, thereby ensuring minimal disruptions in the claim process,” Sebi said in a release.

Further, the timeline for compliance with enhanced qualification and experience requirements for investment advisers has been extended.

Current rules mandate that individual investment advisers, principal officers of non-individual investment advisers and persons who are with the investment advisers and associated with investment advice to comply with enhanced qualification and experience requirements by September 30, 2023.

Based on the representations received from various stakeholders and in view of the emerging landscape of the domain of investment advice, Sebi extended the timeline up to September 30, 2025, to comply with these requirements.

  • Published On Sep 22, 2023 at 08:27 AM IST

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