The Securities and Exchange Board of India (SEBI) on May 19, 2022 has issued a notification regarding the revision in the format of security cover certificate, monitoring and revision in timelines after receiving representations 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.
The notification is divided in the following parts:
A. Revised format of the Security Cover
B. Monitoring of covenants
C. Disclosure by Debenture Trustee:
D. Revision in timelines of submission of security cover certificate, valuation report and Quarterly compliance report and regulatory compliance by Debenture Trustees
E. Monitoring of Recovery Expense Fund (REF) by Debenture Trustee(s)
The provisions mentioned in Part A and B with respect to ‘Revised format of the Security Cover’ and ‘Monitoring of Covenants’ are applicable w.e.f October 01, 2022. Other provisions of this circular shall come into effect with immediate effect.
*Disclaimer – Kindly find the detailed notification and attachment in the annexure of the provided document/link.
[Notification No. SEBI/HO/MIRSD/MIRSD_CRADT/CIR/P/2022/67]
