Melstar Information Technologies Limited, a prominent player in the technology sector, has confirmed that it does not meet the criteria to be classified as a Large Corporate Entity for the financial year ending March 31, 2025. This announcement was made in compliance with SEBI Circular No. SEBI/HO/DDHS/DDHS-POD1/P/CIR/2023/172, which pertains to the fund raising through the issuance of debt securities by large corporate entities. The company communicated this to the BSE Limited and the National Stock Exchange of India Limited as part of its regulatory disclosure obligations.

Background on SEBI Circular

The SEBI Circular dated October 19, 2023, outlines the framework for issuance of debt securities by large corporate entities in India. Under this framework, companies that qualify as large corporates based on certain financial thresholds, including outstanding borrowings and credit ratings, are required to comply with additional disclosure and borrowing criteria. These entities are also expected to meet specific borrowing limits and comply with rules related to the issuance of debt securities.

Melstar’s Compliance

In line with the SEBI circular, Melstar Information Technologies Limited has confirmed that as of March 31, 2025, it does not fall under the large corporate entity category. The company has clearly stated that its outstanding borrowings as of the end of FY 2025 are NIL, and it does not hold a credit rating from any rating agency. This exemption ensures that Melstar is not subject to the additional compliance obligations imposed on large corporates under the circular.

Melstar also emphasized that, as per the requirements of the SEBI circular, companies falling under the large corporate category are required to pay fines to the stock exchanges (BSE and NSE) in case of a shortfall in meeting the necessary borrowing requirements. Since Melstar does not qualify as a large corporate, it is not subject to such financial penalties or further disclosure under this framework.

Key Takeaways from Melstar’s Disclosure

1. Non-Applicability of Large Corporate Criteria: Melstar has confirmed that it does not fall under the large corporate entity criteria, ensuring that it is not subject to additional debt securities issuance compliance.

2. Outstanding Borrowings: The company reported NIL borrowings as of March 31, 2025, a key criterion for classifying an entity as a large corporate.

3. Absence of Credit Rating: Melstar does not hold any credit rating for debt securities, further exempting it from the large corporate criteria outlined by SEBI.

Annexure A: Additional Information on Large Corporate Criteria

Melstar has attached an Annexure A, which further clarifies the details related to the company's non-applicability as a large corporate entity, including the following key points:

• Company Details: Melstar Information Technologies Limited, CIN: L85493MH1986PLC040604, is incorporated in Mumbai, Maharashtra.

• Outstanding Borrowings: The company has no borrowings as of March 31, 2025, which is one of the key criteria used to determine large corporate status.

• Credit Rating: Since no credit rating is required, the company did not report any ratings from agencies.

• Compliance with SEBI Framework: The company has confirmed compliance with the SEBI framework for debt securities issuance.

Future Steps

Melstar Information Technologies Limited has submitted this confirmation to both the BSE and NSE in accordance with the regulatory requirements. The company requested these exchanges to acknowledge receipt of the information, ensuring transparency in its operations and compliance with the SEBI Circular.

This disclosure is part of the company’s ongoing commitment to corporate governance, regulatory compliance, and maintaining an open line of communication with its investors and stakeholders.

About Melstar Information Technologies Limited

Melstar Information Technologies Limited, established in 1986, is a leading provider of IT services and solutions in India. The company offers a wide range of services including software development, system integration, and IT consulting. Its clientele includes government bodies, large enterprises, and private sector organizations. With a commitment to quality, innovation, and customer satisfaction, Melstar continues to serve as a reliable partner in the Indian IT industry.

Conclusion

The confirmation provided by Melstar Information Technologies regarding the non-applicability of the large corporate entity criteria for FY 2025 brings clarity on the company’s debt securities and borrowings status under the new SEBI guidelines. The company has effectively complied with the circular’s requirements and confirmed that it does not meet the thresholds for being classified as a large corporate entity, thus exempting it from additional debt issuance requirements.

Investors and stakeholders can be assured that Melstar remains fully compliant with the regulatory norms while focusing on its ongoing business operations and corporate growth.

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