SEBI Plan to Raise HVDLE Threshold to ₹5,000 Crore
Why in the news
An October 2025 consultation paper seeks lighter governance rules for High Value Debt-Listed Entities.
Key facts
- HVDLEs list NCDs above a set value; framework added in September 2021 under Regulation 3(1)(ca) of LODR 2015.
- Current rule: ₹1,000 crore and above, mandatory from 1 April 2025; 137 entities in FY25.
- Duties resemble equity-listed firms: committees, secretarial reports, independent directors, whistle-blowing.
Proposed tweaks
| Area | Change |
|---|---|
| Material subsidiary | Use turnover, not income |
| Director above 75 | Special shareholder approval |
| Court or regulator nominees | No shareholder approval |
| Committee vacancies | 3 months to fill |
| Intra-group transfers | No shareholder approval |
| Compliance reports | Flexible SEBI timeline replaces 21 days |
| RPT disclosures | Dropped from periodic reports |
- Boards must explain recommendations.
- Clearer rules on secretarial auditors.
- Debenture trustee NOCs for RPTs remain.
Exam angle
- Numbers: ₹1,000 to ₹5,000 crore; 137 to 48.
- Benefit: lower compliance cost, more private placements.