The Securities and Exchange Board of India vide its notification dated 11th April 2022 has published the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) (Amendment) Regulations, 2022 to further amend the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
Through this amendment, regulation 23 which deals with the obligations of the issuer in which sub-regulation (5) has been substituted as follows:
The issuer shall ensure that the secured debt securities are secured by hundred percent 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.
Further regulation 40 which deals with Due Diligence by Debenture trustee has been substituted as follows:
The debenture trustee shall, at the time of filing the draft offer document with the stock exchange(s) and prior to opening of the public issue of debt securities, furnish to the Board and stock exchange(s), a due diligence certificate:
(a) in case of secured debt securities, in the format as specified in Schedule IV of these regulations; and
(b) in case of unsecured debt securities, in the format as specified in Schedule IVA of these regulations.”
