Revised format of security cover certificate, monitoring and revision in timelines
- SEBI vide circular no. SEBI/HO/MIRSD/CRADT/CIR/P/2020/230 dated November 12, 2020, and circular no. SEBI/HO/MIRSD/CRADT/CIR/P/2020/207 dated October 22, 2020 specified format of security cover certificate, periodical monitoring and disclosures by Debenture Trustee(s) and the requirement of creation of “Recovery Expense Fund” (REF).
- Representations were received from issuers, Debenture Trustee(s) as well as other market participants on issues related to operational challenges faced in complying with certain provisions of circulars and have also given suggestions on strengthening the said requirements. These challenges were also discussed in SEBI constituted Working Group on “Unique Identification Code – Securities & Covenant Monitoring System” (‘Working Group’). After taking into account recommendations of the Working Group and feedback from market participants, SEBI amended the SEBI (Debenture Trustees) Regulations, 1993, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and amendments were notified vide gazette notifications dated April 11,2022. Accordingly, the provisions in the above mentioned circulars have been revised as under:
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