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Large Companies Must Borrow 25% Though Corporate Bonds Market From Next Fiscal Say SEBI

Capital Market 

From next fiscal year, large corporates have to raise 25%of their incremental borrowings only through the corporate bonds market, Securities Exchange Board Of India (SEBI) stated in a latest circular.

SEBI defined large corporate as a listed entitiy (except banks), having an outstanding long-term borrowing (more than one year) of at least Rs 100 crore and a credit rating of 'AA and above. In case a large corporate is unable to comply with the requirement, it has to provide an explanation for such shortfall to the stock exchanges in a prescribed manner, SEBI said.

For entities following April-March as their financial year, the framework will come into effect from April 1, 2019, and for firms that follow calendar year as their financial year, it will be effective from January 1, 2020..

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 27 2018. 12:50 IST