SEBI has issued a circular for relaxation in timelines for compliance with regulatory requirements by debenture trustees due to COVID-19

Jul 21, 2021 | by Avantis RegTech Legal Research Team

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Industry Specific Compliance

The Securities and Exchange Board of India (SEBI) on July 20, 2021 has issued a circular for the relaxation in timelines for compliance with regulatory requirements by debenture trustees due to COVID-19. 

In view of the prevailing situation due to Covid-19 pandemic and representations received from the Debenture Trustees, it has been 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:

• Asset Cover Certificate, A statement of value of pledged securities, A statement of value for Debt Service Reserve Account (DSRA) or any other form of security offered, have an extended timeline of August 31, 2021. 

• Net worth certificate of guarantor (secured by way of personal guarantee), Financials/ value of guarantor prepared on basis of audited financial statement etc. of the guarantor (secured by way of corporate guarantee), Valuation report and title search report for the immovable/ movable assets, as applicable, have been extended till October 31, 2021. 

• 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

• Have an extended timeline till August 31, 2021. 

[Circular No. SEBI/HO/MIRSD/CRADT/CIR/P/2021/597]

 


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