Relaxation in timelines for compliance with regulatory requirements by Debenture Trustees due to Covid-19

As per the Circular No. SEBI/HO/MIRSD/CRADT/CIR/P/2021/597 issued on July 20, 2021, SEBI relaxes the timelines for compliance with regulatory requirements by Debenture Trustees due to Covid-19.

1. As per SEBI (Debenture Trustees) Regulations, 1993 as amended from time to time and circulars 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 timelines.

2. Due to Covid-19 pandemic representations has received from various Debenture trustees where they expressed the challenges faced in doing the regulatory compliances within the due dates due to limited capacity of workforce or lockdown in most of the states due to Covid-19.

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 timeliness for compliance with the following regulatory requirements for the quarter/half year/ year ending March 31, 2021, as under:

S. No. Regulatory requirements Current timeline Extended timeline
1. Asset Cover Certificate July 15, 2021 August 31, 2021
2. A statement of value of pledged securities August 31, 2021
3. A statement of value for Debt Service Reserve Account (DSRA) or any other form of security offered August 31, 2021
4. Net worth certificate of guarantor ( secured by way of personal guarantee) October 31, 2021
5. Financials/ value of guarantor prepared on basis of audited financial statement etc. of the guarantor (secured by way of corporate guarantee) October 31, 2021
6. Valuation report and title search report for the immovable/ movable assets, as applicable. October 31, 2021
Following disclosures on the website
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, 2021 August 31, 2021

4. This circular is issued according to 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 market.

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