SEBI Issues operational guidelines for security and covenant monitoring using DLT
– Covering obligations applicable to issuer only
Burhanuddin Dohadwala, Senior Manager & Kaushal Shah, Executive | corplaw@vinodkothari.com
Introduction:
Securities and Exchange Board of India (‘SEBI’) vide its circulars had outlined the following:
| Sr. No | Date of the Circulars | Particulars |
|---|---|---|
| 1 | SEBI Circular dated November 03, 2020 | Process of independent due diligence by debenture trustees on assets of an Issuer company for the purpose of creation of security |
| 2 | SEBI Circular dated November 12, 2020 | Periodical monitoring of security created and enhanced disclosures on the website by debenture trustees on continuous basis. |
| 3 | SEBI Circular dated August 13, 2021 | Specified the manner of recording of charges by Issuers and manner of monitoring by Debenture Trustees, Credit Rating Agencies, etc. and responsibilities thereof. |
| 4 | SEBI Circular dated March 29, 2022 | With effect from April 01, 2022, the recording of asset details (and their verification), allotment, listing and payment of interest or redemption is available in the system. |