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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Revision in the framework for fund raising by issuance of debt securities by large corporates (LCs)

19-Oct-2023 | SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172

The Securities and Exchange Board of India Act, 1992 has issued a circular revising the framework for fund raising by issuance of debt securities by large corporates (LCs).

The 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

Key highlights of the revised circular are:-

1. Para 3 defines ?? Applicability of Framework??, clause 3.1 of para 3 says 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-December as their financial year.

2. Para 4 has been named as ??Framework?? previously it use to be ?Responsibilities of the stock exchange??

3. As per para 5 Stock Exchanges shall by June 30 or by March 31 (as per financial year followed), determine the list of LCs for the financial year.

4. Stock Exchanges shall intimate the LCs by 31st May or by Feb 28th/29th calculated incentive or dis-incentive.

5. Responsibility of Limited purpose clearing corporation (LPCC) has been added through Para 6.

6. As per clause 7.3 of the said circular The LCs shall comply with the requirement of raising 25% of their incremental borrowings done during FY 2022, FY 2023 and FY 2024 respectively by way of issuance of debt securities till March 31, 2024, failing which, such LCs shall provide a one-time explanation in their Annual Report for FY 2024.

7. Clause 2.2(d) of Chapter XII of the NCS Regulations stands deleted and Clause 3.3(b) of Chapter XII of the NCS Regulations stands deleted with the issue of this revised circular.

Please refer the circular for further information.

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