Markets regulator SEBI on Monday proposed a framework to reduce the compliance burden of companies with large debts. File
| Photo Credit: The Hindu
Markets regulator SEBI on Monday proposed a framework to reduce the compliance burden of companies with large debts, by raising the threshold for identifying High Value Debt Listed Entities (HVDLEs) to ₹5,000 crore from the current ₹1,000 crore.
The move would reduce the number of entities classified as HVDLEs from 137 to 48, effectively bringing down around 64% of companies currently falling under the category, SEBI said in its consultation paper.
The proposal aims to reduce the compliance burden and promote ease of doing business.
Corporate governance norms for HVDLEs were first introduced in September 2021, on a comply-or-explain basis until March 31, 2025, and became mandatory from April 2025. These norms apply to all entities with listed outstanding non-convertible debt securities of ₹1,000 crore or more.
Following the rollout of these rules, several market participants approached SEBI seeking a higher threshold for classification. Once designated as an HVDLE, a company is required to comply with governance standards similar to those of equity-listed firms, including the submission of quarterly governance reports, annual secretarial compliance reports, and adherence to board composition norms.
Published – October 27, 2025 10:41 pm IST
