Relaxation in timelines for compliance with regulatory requirements by Debenture Trustees due to the CoVID-19 pandemic

Last updated: 04 May 2021

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The Securities and Exchange Board of India (SEBI) has extended the deadlines for Debenture Trustees to comply with certain regulatory requirements. This decision comes in response to challenges faced by trustees due to COVID-19 pandemic restrictions. The extended timelines apply to submissions of reports and certificates to stock exchanges, website disclosures, and regulatory compliance reporting.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/MIRSD/CRADT/CIR/P/2021/561

May 03, 2021

To,

All Debenture Trustees registered with SEBI
All Recognized Stock Exchanges

Dear Sir/ Madam,

Sub: Relaxation in timelines for compliance with regulatory requirements by Debenture Trustees due to the CoVID-19 pandemic

1. As per SEBI (Debenture Trustees) Regulations,1993 as amended from time to time andcirculars issued thereunder, debenture trustees are required to perform periodical monitoring and disclose various reports/documents/certificates on Stock Exchanges and on their websites within prescribed

2. Representations have been received from debenture trustees with regard to relaxation intimelines for complying with certain regulatory provisions of SEBI Circular No. SEBI/ HO/ MIRSD/ CRADT/ CIR/ P/ 2020/230 dated November 12,2020 (“Circular”).

3. After taking into consideration the representations received from debenture trustees and the challenges arising out of the local restrictions placed by various state governments in wake of CoVID-19 pandemic, it has been decided to extend the timelines for the following regulatory requirements of the SEBI circular dated November 12,2020 for the quarter/half year/ year ending March 31, 2021:

S.No.	Regulatory requirements of SEBI circular dated November 12,2020	Extended timeline
1.	Submission of reports/certifications to Stock Exchanges as per clause 2.1 of circular	July 15^th,2021
2.	Following disclosures on website as per clause 4 of circular: i. Monitoring of asset cover certificate and quarterly compliance report of the listed entity. ii. Monitoring of utilization certificate iii. Status of information regarding breach of covenants/terms of the issue, if any action taken by debenture trustee iv. Status regarding maintenance of accounts maintained under supervision of debenture trustee	July 15^th,2021
3.	Reporting of regulatory compliance as per clause 5 of circular	May 31^st, 2021

4. This circular is issued in exercise of the powers conferred upon SEBI 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 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities

Yours faithfully,

Richa G. Agarwal
General Manager
Market intermediaries Regulation & Supervision Department
Email id: richag@sebi.gov.in
Phone: +91-22-26449596

FAQ :

SEBI has extended the timelines due to representations received from debenture trustees and the challenges arising from local restrictions imposed by state governments in wake of the COVID-19 pandemic.

The extended requirements include the submission of reports/certifications to Stock Exchanges, website disclosures such as monitoring of asset cover certificate and quarterly compliance report, monitoring of utilization certificate, status of information regarding breach of covenants/terms of issue, and status regarding maintenance of accounts. Reporting of regulatory compliance has also been extended.

The new deadline for submission of reports/certifications to Stock Exchanges as per clause 2.1 of the circular is July 15th, 2021.

The disclosures on the website, including monitoring of asset cover certificate, quarterly compliance report, utilization certificate, breach of covenants status, and maintenance of accounts status, are now due by July 15th, 2021.

The reporting of regulatory compliance as per clause 5 of the circular is now due by May 31st, 2021.