SEBI issues guidelines for creation of security in issuance of listed debt securities and due diligence by debenture trustee(s)
November 5, 2020
With a view to operationalize the amendments to the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 (“ILDS Regulations) and SEBI (Debenture Trustees) Regulations, 1993 , by which the role of the debenture trustee was enhanced, SEBI has issued guidelines for creation of security for listed debt securities and ‘due diligence’ that needs to be carried out by debenture trustees. The guidelines provide for the documents/ consents required at the time of entering into DT agreement; due diligence by DT for creation of security; disclosures in the offer document (OD) or Private Placement Memorandum (PPM)/ Information Memorandum (IM) and filing of OD or PPM/ IM by the Issuer; and the creation and registration of charge in relation to security by Issuer. The guidelines have come into force w.e.f. 3 November 2020.
To refer to the guidelines dated 3 November 2020, click here.