SEBI mulls ISIN changes to ease corporate debt refinancing risks
Business
SEBI is looking to change the rules around ISINs (those codes used for tracking bonds) to help big companies handle their debt more smoothly.
Right now, too many bonds come due at once, which can cause cash crunches (especially for nonbank financial companies, or NBFCs) and make refinancing risky.
'Pay-as-you-grow' spreads repayments and raises ISINs
With the new "pay-as-you-grow" plan, companies can spread out their bond repayments over the year.
The plain vanilla ISINs would increase from nine to 12, and the overall cap would rise from 14 to 17.
This should help ease repayment pressure and lower refinancing risks, but SEBI still reminds investors to check a company's financial health before jumping in.