Sebi considering easing of RPT norms for high-value debt listed entities

In a discussion paper, Sebi has proposed that only HVDLEs having 90 per cent or more related party shareholders will have to send notice to debenture holders holding listed NCDs

The Securities and Exchange Board of India (Sebi) is considering easing corporate governance rules pertaining to related party transactions (RPT) for listed non-convertible debentures or debt (NCDs).

At present, the regulations require the so-called high value debt listed entities (HVDLE) — listed companies having NCDs with outstanding value of at least Rs 500 crore — get approval from the majority of their shareholders who are not related parties.

India incorporation made representations to Sebi, seeking an exemption from this rule highlighting challenges faced by them. After which, the regulator analysed 138 HVDLEs to understand the issue better. About 93 of