Securities and Exchange Board of India has issued a circular on 20/07/2021[1] regarding the relaxation in timelines for compliance with regulatory requirements by debenture trustees due to COVID-19. Relaxation was given due to arising situation of COVID-19 and the challenges that came out of the local restrictions placed by various state governments and representation received from the debenture trustees. Securities and Exchange Board of India has previously provided relaxations in timelines through circular dated 12/11/2020[2] and circular dated 03/05/2021[3]. Securities and Exchange Board of India has received representation from the debenture trustees who have expressed that compiling with the requirement within the applicable timeline has faced challenges due to difficulty in sharing information. Various Offices have limited functioning and, people have traveling restrictions due to imposition of lockdown in many states due to the COVID-19 pandemic this in turn has become an obstacle in compiling with the requirements. Securities and Exchange Board of India has decided to extend the timelines for compliance with many regulatory requirements How’s the circular dated 12/11/2020 Due to the prevailing situation of COVID-19 pandemic and representation received from the debenture trustees.
Submission of reports and certificates, such (a) Asset Cover Certificate, (b) Statement of the value of Pledge Securities and (c) A Statement of value for Debt Service images of account or any other form of security offered, to Stock exchanges as per clause 2.1 of the circular has extended timeline till 31st August 2021 that was previously 15/07/2021.
Submission of report and certificates, such as (d) Net worth certificate of guarantor that is secured through personal guarantee, (e) submission of financial or value of guarantor which is to be prepared formulated on audited financial statements of the guarantor and is secured through corporate guarantee, and (f) submission of the title search report and valuation report for the for immovable assets as applicable, to the stock exchanges as per clause 2.1 of the circular has extended the timeline till October 31st, 2021 From 15/07/2021.
Disclosures, that is i. Monitoring of quarterly compliance report of the listed entity and asset cover certificate ii. Monitoring of utilization certificate, iii. the information status of the term of the issue of the breach of covenant and actions taken by the debenture trustee in case there are any, iv) Status regarding maintenance of accounts maintained under the supervision of debenture trustee, is to be made on the website as per clause 4 of the circular. The timelines for disclosure have extended from 15/07/2021 to 31/08/2021.
As per Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with the provision of regulation 2A of the Securities and Exchange Board of India debenture trustees regulation, 1993 SEBI has been conferred the power to issue a circular to protect the interest of investors in securities, promote development and regulate the securities market.
[1] SEBI/HO/MIRSD/CRADT/CIR/P/2021/597
[2] SEBI/HO/MIRSD/CRADT/CIR/ P/2020/230
[3] SEBI/HO/MIRSD/CRADT/CIR/P/2021/561
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws being force In India, for the time being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Consulting & Governance shall not be responsible for any errors caused due to human error or otherwise.
