Revised manner of preparation and submission of security cover certificate by Debenture Trustee

The Securities Exchange Board of India vide circular dated May 19, 2022 has issued the revised manner of preparation and submission of security cover certificate by Debenture Trustee(s):

1. Debenture trustee on quarterly basis shall certify the market value of assets based on the due diligence carried out by it or its appointed agencies and shall submit the security cover certificate as per revised format provided in this circular. Debenture Trustee shall certify the security cover in respect of the secured debt securities, to the extent charged held by it.
2. In case of reduction in the computed value of security cover in comparison to the previous quarter or previously calculated security cover, the Debenture Trustee shall record the reason for such variation in the security cover certificate. Clarification, if any, in this regard, may be obtained by Debenture Trustee from listed entity.