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    Question

    Consider the following statements regarding the SOPs generated by SEBI for large corporates-

    I. Firms will need to meet the borrowing quota over a contiguous period of three years.

    II. If  there is a surplus of borrowings at over 25%,there will be a reduction in the annual listing fee between 2% to 20% at the end of T+2.

    III. The contribution to the Core Settlement Fund (CSF) will go down from 0.01% to 0.05%.

    Which of the following statements is/are not true ?

    A Only I Correct Answer Incorrect Answer
    B Only I & II Correct Answer Incorrect Answer
    C Only II Correct Answer Incorrect Answer
    D Only I & III Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

      In a move to deepen the bond market, the Securities and Exchange Board of India (SEBI) has introduced sops for large corporates (LCs), which have raised more than the mandated share of 25% of their qualified borrowing through the bond route.   SEBI has also provided a framework from FY25 onwards. Firms will need to meet the borrowing quota over a contiguous period of three years. At the end of three years (last day of T+2 year), if there is a surplus of borrowings at over 25%, the firms will have the following advantages.    One, there will be a reduction in the annual listing fee between 2% to 10% at the end of T+2. Two, the contribution to the Core Settlement Fund (CSF) will go down from 0.01% to 0.05%. The reduction in the fee will depend on meeting the norms between 0-15% and 75%. In case of a shortfall, the additional contribution for a shortfall will range from 0.015% to 0.055% between 0-15% and 75%. Similarly, there will be an additional method to increase the CSF.

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