SEBI Proposes Major Threshold Revision To Ease Compliance For Debt-Listed Entities

India’s market regulator, the Securities and Exchange Board of India (SEBI), has intensified its push for regulatory simplification with a new proposal to revise the threshold for identifying High-Value Debt Listed Entities (HVDLEs). The consultation paper, released in October 2025, suggests increasing the threshold from ₹10 billion to ₹50 billion in outstanding listed non-convertible debt securities.

Major takeaways  

• The proposed revision significantly narrows the pool of entities subject to enhanced corporate governance norms under LODR regulations  
• SEBI’s earlier consultation paper also recommended raising the HVDLE threshold from ₹500 crore to ₹1,000 crore, indicating a broader reform agenda  
• The regulator seeks to ease compliance related to board composition, audit committees, and related party transactions  
• The move is expected to benefit smaller issuers and reduce regulatory overhead without compromising investor protection  
• SEBI emphasizes stakeholder feedback to ensure balanced implementation and market alignment  
• The initiative supports India’s capital market development and aligns with global best practices for debt governance  
• Public comments are invited to refine the framework before final adoption

This dual-threshold proposal marks a pivotal shift in SEBI’s approach to debt market regulation, aiming to foster a more inclusive and efficient financial ecosystem.

Sources: SEBI Consultation Paper (October 2025), PwC India Regulatory Insights, Corporate Professionals, Economic Times Markets