The Securities and Exchange Board of India (SEBI) has relaxed the framework mandating large corporates (LCs) to access the corporate bond market for debt-raising.Which of the following statements is/are  incorrect with respect to the given information?

I.SEBI’s rules require LC borrowers to secure one-fourth of their incremental borrowing through debentures within a two-year period.

II. A penalty of 0.2 per cent of the shortfall was initially imposed in cases of non-compliance.

III.SEBI also extended the timeline for compliance with enhanced qualification and experience requirements for Investment Advisers to September 30, 2028.

Solution

The Securities and Exchange Board of India (SEBI) has relaxed the framework mandating large corporates (LCs) to access the corporate bond market for debt-raising.   It  has increased the threshold for defining LCs and removed penalties imposed on companies failing to raise the mandated amount through debt securities issuance.   SEBI’s rules requires LC borrowers to secure one-fourth of their incremental borrowing through debentures within a two-year period.  A penalty of 0.2 per cent of the shortfall was initially imposed in cases of non-compliance. SEBI also extended the timeline for compliance with enhanced qualification and experience requirements for Investment Advisers by two years to September 30, 2025.