Hindcon Chemicals Limited, a leading manufacturer in the chemical and construction industry, has officially confirmed that it does not qualify as a Larger Corporate Entity (LC) as per the Securities and Exchange Board of India (SEBI) circular SEBI/HO/DDHS/CIR/P/2018/14, dated November 26, 2018. The company made this disclosure to the National Stock Exchange of India (NSE) regarding its status for the financial year ending March 31, 2025.

Understanding SEBI's Larger Corporate Entity (LC) Criteria

The SEBI circular issued in 2018 introduced a framework for Large Corporate (LC) Entities to enhance transparency in the bond market. Companies that meet specific financial thresholds must comply with additional disclosure and borrowing norms under SEBI’s debt framework.

For a company to be classified as a Larger Corporate (LC) Entity, it must meet the following criteria:

1. Listed on NSE or BSE (excluding insurance, banking, and non-banking financial companies).

2. Have an outstanding long-term borrowing of ₹100 crore or more.

3. Possess a credit rating of "AA and above".

4. Intend to raise 25% or more of its incremental borrowing through debt securities.

Since Hindcon Chemicals Limited does not meet these criteria, it has officially declared that it does not fall under the Larger Corporate (LC) category for FY 2024-25.

Regulatory Compliance and Official Disclosure to NSE

In line with SEBI’s Listing Obligations and Disclosure Requirements (LODR), Hindcon Chemicals Limited has submitted a formal declaration to NSE on April 2, 2025, confirming that it does not qualify as an LC.

This disclosure ensures regulatory compliance and provides transparency to investors, stakeholders, and regulatory bodies.

Implications of Non-Applicability as a Larger Corporate (LC) Entity

• No Mandatory Debt Issuance Compliance: Since the company is not categorized as an LC, it is not required to meet SEBI’s borrowing norms for Large Corporate Entities.

• Reduced Regulatory Burden: Hindcon Chemicals can focus on business expansion without additional compliance requirements related to the debt market.

• Investor Assurance: This disclosure reassures investors and stakeholders that the company is in full compliance with SEBI’s regulatory norms.

Commitment to Transparency and Future Disclosures

Despite being exempt from Larger Corporate (LC) compliance norms, Hindcon Chemicals Limited remains committed to maintaining financial transparency and will continue to provide timely regulatory disclosures in accordance with SEBI and NSE guidelines.

Conclusion

Hindcon Chemicals Limited has officially confirmed that it does not fall under the category of Larger Corporate Entity as per SEBI’s circular dated November 26, 2018. The company has formally disclosed this status to NSE, ensuring full compliance with SEBI’s listing regulations. This declaration highlights Hindcon Chemicals’ commitment to regulatory transparency while enabling it to focus on business growth and financial stability.

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