In a regulatory filing dated 24 April 2025, Sanstar Limited, a prominent Gujarat-based company in the agro-processing and food sector, issued an official statement to the BSE Limited and National Stock Exchange of India Limited (NSE), clarifying its position under the SEBI framework for fund-raising through issuance of debt securities by large entities.

The statement was made pursuant to various Securities and Exchange Board of India (SEBI) circulars, including:

• SEBI/HO/DDHS/CIR/P/2018/144 dated 26th November 2018

• SEBI/HO/DDHS/P/CIR/2021/613 dated 10th August 2021

• SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated 19th October 2023

These circulars collectively aim to strengthen transparency and regularity in debt security issuance by entities that qualify as "Large Corporates" under SEBI’s classification.

Sanstar's Declaration

In this official submission, Sanstar Ltd clearly stated that as of March 31, 2025, it does not qualify as a "Large Corporate", as defined under the above-referenced SEBI guidelines. Therefore, the initial disclosure requirements, particularly those under Clause 3 of the aforementioned circulars, do not apply to the company.

This declaration was signed by Mr. Fagun Shah, the Company Secretary and Compliance Officer (ACS-62163) of Sanstar Ltd. The company formally requested both exchanges to take this on record for regulatory compliance purposes.

What Is SEBI’s Large Corporate Framework?

The SEBI framework for fund raising by large entities was introduced to enhance transparency and bring discipline in the debt market. Companies falling under this category are mandated to meet specific norms, including:

• Minimum debt issuance thresholds

• Annual disclosure obligations

• Monitoring of borrowings through debt securities

To qualify as a “Large Corporate”, a company must meet certain criteria related to net worth and outstanding borrowings as of the financial year’s end. The purpose of this classification is to ensure that large companies raise a minimum percentage of their borrowings through the debt market, thereby deepening and stabilizing the corporate bond ecosystem in India.

Sanstar’s Exemption and Its Significance

By declaring that it does not fall under the "Large Corporate" category, Sanstar Ltd:

• Avoids the initial disclosure obligations related to debt issuance for FY2025-26.

• Is not bound by the annual filing requirements under the large corporate framework.

• Retains flexibility in choosing its methods of raising capital, without being mandated to issue debt securities to the public or institutional investors.

This disclosure is essential not just from a compliance standpoint, but also to assure investors and regulatory bodies that the company is diligently adhering to SEBI norms and is transparent in its financial and corporate governance practices.

About Sanstar Ltd

Sanstar Limited is a Gujarat-headquartered company involved in the manufacturing and export of starch-based products. Known for its modern processing facilities and robust supply chain, the company services several sectors including food, textile, paper, and pharmaceuticals. The company operates from its corporate office in Ahmedabad and has a major factory located in Gulabpura, Karvand Village, Shirpur Taluka, Dhule District, Maharashtra.

Conclusion

This recent confirmation from Sanstar Ltd reinforces its commitment to compliance and transparency. By clearly stating its non-classification as a Large Corporate under SEBI’s guidelines, the company safeguards itself from unnecessary regulatory burdens while keeping stakeholders informed.

For investors and market participants, such clear disclosures are vital in assessing a company’s financial strategy, corporate governance, and risk exposure. As regulatory landscapes evolve, especially in the debt markets, timely communication like this not only builds credibility but also ensures alignment with the spirit of fair and responsible business practices

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