SEBI Relaxes Rules for Compliance Timelines for Debentures Trustees

In the midst of the ongoing coronavirus pandemic, the Sebi on Monday loosened restrictions for debenture trustees in order to comply with regulatory criteria pertaining to transparency about asset cover certificate monitoring.

The move comes after the Securities and Exchange Board of India (Sebi) received representations from debenture trustees (DTs) in this regard, the regulator said in a circular.

After taking into consideration the representations received from DTs and the challenges arising out of the local restrictions placed by various state governments in the wake of the COVID-19 pandemic, it has been decided to extend the timelines for the certain regulatory requirements for the quarter, half-year and full-year ended March 31, 2021, Sebi said.

Under the norms, DTs are required to perform periodical monitoring and disclose various reports, certificates on stock exchanges and on their websites within prescribed timelines.

The markets regulator has given time till July 15 to DTs to make disclosure on their websites about monitoring of asset cover certificate and quarterly compliance report of the listed entity, according to the circular.

As per the guidelines, these disclosures need to made within 60 days from the end of a quarter.

Also, time time has been given till July 15 to disclose about status of information regarding breach of covenants/terms of the issue, if any action taken by DTs, as well as status regarding maintenance of accounts maintained under their supervision and monitoring of utilisation certificate.

In addition, Sebi has extended time period till July 15 for submitting asset cover certificate, statement of value of pledged securities, net worth certificate of guarantor (secured by way of personal guarantee), financials/value of guarantor prepared on basis of audited financial statement of the guarantor (secured by way of corporate guarantee) to the stock exchanges.

With respect to reporting of regulatory compliance, Sebi has given time till May 31 to furnish risk-based supervision report to the regulator.

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