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Securities and Exchange Board of India (SEBI) vide notification / Circular No. SEBI/HO/MIRSD/CRADT/CIR/P/2021/597 dated 20th July 2021, has introduced 'Relaxation in timelines for compliance with regulatory requirements by Debenture Trustees due to Covid-19' in exercise of power conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 2A of the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993.

The Circular was addressed to

  • All Debenture Trustees registered with SEBI
  • All Recognized Stock Exchange
SEBI Compliance Relaxations to Debenture Trustees  

Need of the Circular

To protect the interest of investors in securities and to promote the development of, and to regulate, the securities market SEBI has provided Relaxation in timelines for compliance with regulatory requirements by Debenture Trustees due to Covid-19 pandemic. Debenture Trustees expressed the challenges faced in complying with the requirements within the applicable timelines due to the difficulty in information sharing, limited functioning of the various offices and travelling restrictions and imposition of lock down in most states due to Covid-19

Previous Relaxations

SEBI had earlier provided relaxations in timelines for compliance with certain regulatory provisions of SEBI Circular No. SEBI/HO/MIRSD/CRADT/CIR/ P/2020/230 dated November 12, 2020 vide Circular no. SEBI/HO/MIRSD/CRADT/CIR/P/2021/561 dated May 03, 2021.

 

SEBI Relaxations

SEBI has decided to extend the timelines for compliance with the following regulatory requirements of the SEBI circular dated November 12, 2020 for the quarter/ half year/ year ending March 31, 2021, as under:

S. No.

Regulatory requirements of SEBI circular dated November 12, 2020

Current timeline

Extended Timeline

1.

Submission of reports/ certifications to Stock Exchanges as per clause 2.1 of the circular

July 15, 2021

 

a.

Asset Cover Certificate

August 31, 2021

b.

A statement of value of pledged securities

August 31, 2021

c.

A statement of value for Debt Service Reserve Account (DSRA) or any other form of security offered

August 31, 2021

d.

Net worth certificate of guarantor (secured by way of personal guarantee)

October 31, 2021

e.

Financials/ value of guarantor prepared on basis of audited financial statement etc. of the guarantor (secured by way of corporate guarantee)

October 31, 2021

f.

Valuation report and title search report for the immovable/ movable assets, as applicable.

October 31, 2021

2.

Following disclosures on the website as per clause 4 of circular:

  1. Monitoring of asset cover certificate and quarterly compliance report of the listed entity.
  2. Monitoring of utilization certificate
  3. Status of information regarding breach of covenants/ terms of the issue, if any action taken by debenture trustee
  4. Status regarding maintenance of accounts maintained under supervision of debenture trustee

July 15, 2021

August 31, 2021

 

Link: Click Here

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

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