What's Covered Under the Article:

On April 26, 2025, Drone Destination Limited (formerly Drone Destination Private Limited) formally notified the National Stock Exchange (NSE) regarding its non-eligibility as a “Large Corporate” under the guidelines set by the Securities and Exchange Board of India (SEBI). This clarification comes in accordance with SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023, which mandates entities to disclose their status based on specific criteria for large corporate classification.

Background

The SEBI Circular, which outlines the framework for fund-raising through debt securities, categorizes companies based on certain financial thresholds, including outstanding borrowings and credit ratings. Large Corporates are expected to adhere to additional compliance norms when issuing debt securities, such as maintaining a specified minimum borrowing amount.

Drone Destination Limited’s Compliance

Drone Destination Limited, a leading player in the drone technology sector, confirmed that as of March 31, 2025, its outstanding borrowings stood at ₹15.97 Crore. The company also clarified that it does not meet the criteria outlined in SEBI's circulars SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 and SEBIIHO/DDHS/CIR/P/2018/144 for being categorized as a Large Corporate. As such, it is exempt from the additional regulatory framework that applies to larger entities.

This self-assessment aligns with SEBI's broader efforts to ensure transparency and compliance within the financial markets, particularly in the context of raising capital through debt instruments.

Key Highlights

• Outstanding Borrowing: Drone Destination Limited’s total borrowing as of March 31, 2025, was ₹15.97 Crore, falling short of the threshold required for large corporate status.

• Credit Rating: The company does not hold any credit rating as per the SEBI circular, further confirming its non-eligibility for the large corporate classification.

• Stock Exchange Compliance: In the event of any shortfall in the required borrowing, Drone Destination Limited has committed to paying any fines through the National Stock Exchange of India (NSE), specifically its Emerge platform.

Conclusion

By confirming its non-eligibility for large corporate status, Drone Destination Limited demonstrates its compliance with SEBI’s regulatory framework. The company has ensured that its debt issuance activities remain in line with the guidelines for smaller entities, avoiding the more stringent compliance requirements that would apply to large corporates. This disclosure serves as a crucial step in maintaining transparency and adherence to financial regulations, assuring stakeholders of the company’s commitment to regulatory norms.

For further updates on corporate disclosures and regulatory filings, Drone Destination Limited will continue to adhere to SEBI’s evolving guidelines, ensuring ongoing compliance with the debt issuance framework.

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