What is High-Value Debt Listed Entity?

About High-Value Debt Listed Entity: 

• An entity which has listed its non-convertible debt securities on a recognised stock exchange and has an outstanding principal value of listed non-convertible debt securities of Rs. 500 Crore and above will be categorized as a ‘High-value debt listed entity’ 

What are ‘Non-Convertible Debentures (securities)? 

• Debentures are long-term financial instruments which acknowledge a debt obligation towards the issuer. 
• The debentures which can’t be converted into shares or equities are called non-convertible debentures (or NCDs). 
• To compensate for this drawback of non-convertibility, lenders are usually given a higher rate of return compared to convertible debentures. 
• In India, usually, these have to be issued with a minimum maturity of 90 days.

Q1) What are shares?

Shares represent equity ownership in a corporation or financial asset, owned by investors who exchange capital in return for these units. 

Source: Sebi for review of governance norms for high-value debt-listed entity ​​​​​​​ 

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