Sebi eyes new rules for listed bonds

 Mumbai,Feb 9, 2023

Sebi on Wednesday proposed a new set of corporate governance norms for entities that have listed nonconvertible debt securities with outstanding value of Rs 500 crore or more. The proposals to change the regulations especially pertains to related party transactions (RPTs).

Sebi feels that there is a need to review the Listing Obligations and Disclosure Requirements (LODR) norms relating to RPTs and the need for nod from bondholders and shareholders for such transactions. The development comes in the wake of the crash in the stock prices of Adani Group of companies, where questions were raised about its large quantum of outstanding debt, some of which are listed.

For such securities, where 90% or more shareholders in number are related parties, it is suggested that proposals relating to RPTs should be put up for approval by shareholders.
But this rule should be applicable to only listed nonconvertible debt securities.

[The Economic Times]