CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

SEBI operational framework for transactions in defaulted debt securities post maturity

CS Lalit Rajput 
on 23 June 2020

LinkedIn


Securities Exchange Board of India (SEBI) vide Circular no. SEBI/HO/DDHS/CIR/P/103/2020 dated 23rd June, 2020 has came out with Operational framework for transactions in defaulted debt securities post maturity date/ redemption date under provisions of SEBI (Issue and Listing of Debt Securities) Regulations, 2008.

The Circular was issued to:

· All Issuers who have listed their debt securities
· All Recognized Stock Exchanges
· All Depositories
· All Debenture Trustee(s)

SEBI has received various Representations from market participants and investors to allow transactions in debt securities where redemption amount has not been paid on maturity/redemption date (referred as defaulted debt securities) and has decided to introduce an operational framework for transactions in defaulted debt securities Accordingly.

Applicability: The provisions of this circular shall come into force from July 01, 2020.

SEBI operational framework for transactions in defaulted debt securities post maturity

Outline of the operational framework presented in a tabular form along-with timelines:

 
 

Event

Activity to be undertaken

Timeline (Working Days)

By

To

1.

Execution of Debenture trust deed

Pre-authorization to seek debt redemption payment-related information from issuer’s bank

At the time of execution of the deed

Issuer

Debenture Trustee(s)

2.

Any change in bank details of issuer for making debt redemption payment

Information regarding updated bank details

Within 1 working day of event

Issuer

Debenture Trustee(s)

3.

Creation of ISIN / Listing of Debt Securities

Intimation of Redemption date

-

Issuer

Depositories

Stock Exchange(s)

4.

Redemption/ Maturity date (T day)

Non acceptance of

trades for reporting/settlement

T-2

Stock Exchange

-

5.

Temporary restriction on transaction in ISIN

T

Depository

-

6.

Intimate Status of payment of debt securities

T+1

Issuer

Stock Exchange(s)

Depositories

Debenture Trustee(s)

7.

Non receipt of status of payment from Issuer

Independent Assessment of Payment Status

T+2 to T+9

Debenture Trustee(s)

-

8.

Intimate Status of payment of debt securities

By T+9

Stock Exchange(s)

Depositories

9.

Receipt of information regarding full payment

Obligations as per para 9 of Annexure A

T+3/T+11/

event basis, as applicable

Depositories Stock Exchanges

10.

Receipt of information regarding non-payment

Obligations as per para 4-8 of Annexure A

Depositories Stock Exchanges

Continuous assessment of payment

11.

Any development that impacts the status of default of the concerned debt securities (including restructuring of debt securities, IBC proceedings,

its repayment, etc.)

Intimate updated Status of payment of debt securities

Within 1 working day of event

Issuer or Debenture Trustee(s)

1. Stock Exchange(s)

2. Depositories

12.

Continuous assessment of Payment

Intimate Status of payment of debt securities

2ndworking day of April every financial  year

Issuer

1. Stock Exchange(s)

2. Depositories

3. Debenture

Trustee(s)

13.

Non receipt of

status of payment from Issuer

Independent

Assessment of Payment Status

3rd working day of April – 7th working day of April of every financial year

Debenture Trustee(s)

 

14.

 

Intimate Status of payment of debt securities

Within 7working days of April of Every financial year

 

1. Stock Exchange(s)

2. Depositories

 

Disclaimer: 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.


Tags :

Recommended Read




Category LAW
Other Articles by - CS Lalit Rajput 




Comments



Popular Articles



CCI Articles

submit article

Stay updated with latest Articles!





Trending Tags
itc
Excise
career
cag
icsi
exams
Professional Resource
sebi
itr
tds
gst council meeting
audit
custom
income tax
Others
eway bill
csr
epf
gst
rbi
students
gstr 9
tcs
close
GST Live Class

FM by Grant Thornton    |    x