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Sebi proposes doubling threshold for 'High Value Debt Listed Entities' to Rs 1,000 crore

The Securities and Exchange Board of India (Sebi) has proposed increasing the threshold for identifying High Value Debt Listed Entities (HVDLEs) from Rs 500 crore to Rs 1,000 crore. This move aims to ease compliance burdens and enhance corporate governance norms for debt-listed entities, encouraging a more efficient business environment.

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The Securities and Exchange Board of India (Sebi) has proposed an increase in the threshold for identifying High Value Debt Listed Entities (HVDLEs) from ₹500 crore to ₹1,000 crore in a bid to ease compliance burdens for companies. Currently, any entity with outstanding non-convertible debt securities valued at ₹500 crore or more is classified as an HVDLE.

In a consultation paper released on Thursday, Sebi suggested that if an HVDLE's outstanding debt drops below the proposed threshold for a defined period, it could trigger the end of certain governance obligations. This move is intended to provide greater flexibility to these entities.

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