Sebi amends debenture trustee norms
Capital markets regulator Sebi has amended norms related to security cover, disclosure of credit ratings and due diligence certificate for unsecured debt securities.
Capital markets regulator Sebi has amended norms related to security cover, disclosure of credit ratings and due diligence certificate for unsecured debt securities.
Sebi has revised rules pertaining to debenture trustee norms, apart from issue and listing of non-convertible securities norms and LODR (Listing Obligations and Disclosure Requirements) rules, according to three separate notifications issued on Monday.
Sebi board had already approved proposals in this regard in February.
See Zee Business Live TV Streaming Below:
The regulator has altered rules to align the framework and terminology with respect to 'security cover' wherein the term 'asset cover' has been substituted with term 'security cover' in debenture trustee rules and LODR norms.
In addition, the regulator has redrafted rules prescribing the maintenance of security cover sufficient to discharge both principal and interest thereon.
Further, the regulator has rationalised the disclosure requirement with regard to credit ratings and put in place the requirement of a due diligence certificate for unsecured debt securities in the (Issue and Listing of Non-Convertible Securities) rules.
Rationalising the requirement, Sebi said disclosure pertaining to details of credit rating along with the latest press release of the credit rating agency in relation to the issue and declaration that the rating is valid as on the date of issuance and listing need to be made in the prospectus.
It further said that such press releases should not be older than one year from the date of opening of the issue.
Earlier, disclosures were required with regard to details of credit rating along with reference to the rating letter issued (not older than one month on the date of opening of the issue) by the rating agencies in relation to the issue.
Under the new rules related to non-convertible securities, Sebi said the issuer will have to ensure that the debt securities are secured by 100 per cent security cover or higher security cover as per the terms of the offer document and/or debenture trust deed sufficient to discharge the principal amount and the interest thereon at all times for the issued debt securities.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
07:51 PM IST