FAQs on LODR amendment on ‘High Value’ debt listed entities
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- FAQs on recent amendments under the Listing Regulations – https://vinodkothari.com/2021/08/faqs-recent-amendments-listing-regulations/
- Articles on fifth amendment regulations:
- Corporate Governance requirements applicable to ‘High Value’ Debt listed entities – https://vinodkothari.com/2021/09/high-value-debt-listed-entities-under-full-scale-corporate-governance-requirements/
- Analysis on LODR Fifth Amendment – https://vinodkothari.com/2021/09/corporate-governance-enforced-on-debt-listed-entities/
- Presentation on LODR Fifth Amendment for a quick overview – https://vinodkothari.com/2021/09/presentation-on-lodr-fifth-amendment-regulations-2021/
- Snapshot of LODR Fifth Amendment – https://vinodkothari.com/2021/09/full-scale-corporate-governance-extended-to-debt-listed-companies/
- Debt listed entities under new requirement of quarterly financial results – https://vinodkothari.com/2021/09/debt-listed-entities-under-new-requirement-of-quarterly-financial-results/
- Ease of doing business: Debt listed companies slide down to unlisted companies – https://vinodkothari.com/2021/02/debt-listed-companies-slide-down-unlisted-companies/
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Does the definition of HVDLE include equity listed entities which also have listed outstanding NCDs > Rs 500 crore or just other entities which have listed outstanding NCDs > Rs 500 crore?
This query is being asked on account of Explanation (1) in Chapter IV Reg 15 which states as follows:
“The entities referred in the first proviso to sub-regulation (1A) of regulation 15 are referred to as ‘high value debt listed entities’ for the purpose of this chapter”.
ref
The First proviso to Sub regulation (1A) of reg 15 states :
“Provided that in case an entity that has listed its non-convertible debt securities triggers the specified threshold of Rupees Five Hundred Crore during the course of the year, it shall ensure compliance with these provisions within six months from the date of such trigger:”
The first proviso refers to “an entity that has listed its NCDS” and not “listed entity that has listed its NCDS”
Dear Sir,
Kindly note that as per the definition of HVDLE as mentioned above, those entities which have listed their NCDs worth Rs. 500 Cr or more shall be considered as HVDLEs. These entities may also include those who have already have their equity shares listed on the stock exchanges. Thus, as the determination is on the basis of quantum of listed NCDs, listing of other securities will not impact the status of the entity as an HVDLE.
Further, in case of an entity which has listed its equity shares on the stock exchanges, the corporate governance provisions specified under Regulation 16 to 27 would already be applicable to the said entity. In case of such entities, they would be required to check if any additional or stricter requirement has been prescribed in case of HVDLEs, for instance, the requirement for filing of statement of related party transactions under Regulation 23(9) for other listed entities is within 30 days of publishing of their standalone and consolidated financial results, while HVDLEs are required to file the same along with their standalone financial results.
Hope the same clarifies.