Large companies get flexibility in raising debt funds

SEBI approved a proposal to provide flexibility in the framework for large corporates (LCs) for meeting their incremental financing needs through issuance of debt securities.

The regulator in its board meeting held announced a set of measures to provide flexibility to the existing LC framework. It had issued a consultation paper in August this year on ‘Review of framework for borrowings by Large Corporates’.

“A higher monetary threshold has been specified for defining LCs, thereby reducing the number of entities qualifying as LCs,” SEBI said.

The current threshold for the criteria of outstanding long-term borrowings for the purpose of identifying any entity as LC is Rs 100 crore or above. SEBI, in the consultation paper, had proposed the threshold to be increased to Rs 500 crore or above.