In order to uplift the bond/ debt market in India and to reduce the over-reliance burden on the banks for corporate funding, the Indian capital market regulator, Securities Exchange Board of India (“SEBI”) has initiated to diversify the borrowings of Indian corporates, to consider mandating the Large Corporate entities (hereinafter known as “the LCs”) (as defined below), through raising about one-fourth of the incremental financing needs by the issuance of debt securities1.

Pursuant to the above, the SEBI came out with a circular no. SEBI/HO/DDHS/CIR/P/2018/144 dated November 26, 2018, providing the detailed framework for all the listed entities (whose specified securities2 or debt securities or non-convertible redeemable preference shares (“NCRPS”) are listed on SEBI recognized stock exchanges).

The Closing of the financial year March 31, 2020 is the first financial year for identification of the LCs and submission of the report on the Incremental Borrowings(“IB”)(as defined below) with the stock exchanges in terms of the SEBI(Issue and Listing of Debt Securities)Regulations, 2008 or “ILDS Regulations”