A clean LODR record now helps you raise money.

Most people will read SEBI's October 07 circular as a debt-market relaxation. I read it as a governance signal.

Eligible listed issuers (those regulated by SEBI, RBI, IRDAI or PFRDA, with AA- or better ratings) can now privately place ₹10,000 face-value debt without appointing a merchant banker. That saves time and cost. Look at the second condition, though: the issuer must have no pending fines or penalties from SEBI or the stock exchanges under the LODR Regulations.

For years, Boards have seen exchange fines for a late Reg 33 results filing, a delayed board-composition fix or a missed Reg 23 timeline as small costs. Pay the small fine, move on.

That approach now costs more. An unpaid or disputed LODR fine can stop a company from using a faster, cheaper way to raise money.

Even if your company isn't eligible today, this is how regulators will increasingly price compliance.

In my 28+ years advising Promoters and CFOs, I've often found it hard to show management what compliance is worth in rupees. This circular helps.

What I'm suggesting to clients this week:

1️⃣ Check exchange portals for any open LODR fines or SOP notices.

2️⃣ Settle or close them before the next fundraising conversation.

3️⃣ Report "pending regulatory penalties" to the Board every quarter as a standing item. LODR Schedule II already requires materially important penalty notices to be placed before the Board; this makes the full picture routine.

Your compliance record now affects your funding options.