Now Reading: SEBI proposes easing debt repayment norms for companies
-
01
SEBI proposes easing debt repayment norms for companies
The Securities and Exchange Board of India (SEBI) has proposed raising the limit on debt securities maturing within a single financial year to help companies manage liquidity better. In a consultation paper…
The Story in Brief
The Securities and Exchange Board of India (SEBI) has proposed raising the limit on debt securities maturing within a single financial year to help companies manage liquidity better. In a consultation paper released Monday, the regulator suggested increasing the maximum number of International Securities Identification Numbers (ISINs) that can mature annually from 14 to 17 for privately placed debt. The proposal comes after market participants told SEBI that current limits hamper liquidity management and exacerbate asset-liability mismatches. Additionally, SEBI has proposed allowing up to 12 ISINs for plain vanilla debt securities, up from nine, with an extra ISIN permitted for every subsequent Rs 15,000 crore in outstanding debt maturing in a year.
The Indian Opinion
The debate around SEBI's latest proposal has sparked predictable claims of a corporate giveaway versus necessary reform. Yet the regulator's move to increase ISIN limits and ease past debt listing rules is a practical response to genuine liquidity concerns voiced by market participants. Rather than portraying this as either a sellout or a saviour, Indians should recognise it as incremental calibration of rules that had created unintended cash flow crunches, especially for NBFCs. The real test will be whether the final framework balances flexibility with adequate investor protection during the comment period ending 31 August.
Source: livemint.com
This story was synthesised by AI from the source linked above.
