Date: 2022-10-03Category: Not ApplicableState: Union GovernmentCountry: India
Extension of timeline for entering the details of the existing outstanding non-convertible securities in the ‘Security and Covenant Monitoring’ system hosted by Depositories
**Summary:**
This circular, issued by the Securities and Exchange Board of India (SEBI) on October 3, 2022, extends the timeline for issuers to enter details of existing outstanding non-convertible securities into the Security and Covenant Monitoring system hosted by Depositories, which utilizes Distributed Ledger Technology (DLT). This extension is in response to requests from depositories due to issuers needing more time to enter legacy data.
Specifically, the circular modifies paragraph 8.d of the SEBI Circular dated March 29, 2022, and mandates that issuers must enter the details of existing outstanding non-convertible securities into the DLT system on or before October 31, 2022. Debenture Trustees (DTs) are required to verify the data by December 31, 2022.
This circular applies to issuers who have listed or propose to list Non-Convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities, or Commercial Paper; Recognized Stock Exchanges; Debenture Trustees registered with SEBI; Credit Rating Agencies registered with SEBI; and Depositories registered with SEBI.
The circular is issued under the authority granted to SEBI by Section 11(1) of the Securities and Exchange Board of India Act, 1992, and other relevant regulations.
The full circular is available on the SEBI website (www.sebi.gov.in) under the categories "Legal Framework" and "Circulars." For further information, contact Pradeep Ramakrishnan, General Manager, Department of Debt Hybrid Securities, at pradeeprsebi.gov.in or +91 22 26449246.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body issuing the circular.
Debenture Trustees (DTs): Entities registered with SEBI, responsible for monitoring securities.
Credit Rating Agencies: Agencies registered with SEBI that provide credit ratings for securities.
Depositories: Entities that maintain the Security and Covenant Monitoring system.
Security and Covenant Monitoring system: A system hosted by Depositories for monitoring securities, utilizing Distributed Ledger Technology (DLT).
Distributed Ledger Technology (DLT): The technology used in the Security and Covenant Monitoring system.
Securities and Exchange Board of India Act, 1992: The act that confers powers upon SEBI.
October 31, 2022: The extended deadline for issuers to enter details of existing outstanding nonconvertible securities into the DLT system.
SEBI/HO/DDHS/RACPOD1/CIR/P/2022/136 October 03, 2022
To,
Issuers who have listed and/ or propose to list Non-Convertible Securities, Securitised
Debt Instruments, Security Receipts, Municipal Debt Securities or Commercial Paper;
Recognized Stock Exchanges;
All Debenture Trustees registered with SEBI;
All Credit Rating Agencies registered with SEBI;
All Depositories registered with SEBI
Sir/ Madam,
Sub: Extension of timeline for entering the details of the existing outstanding non-
convertible securities in the ‘Security and Covenant Monitoring’ system hosted by
Depositories
1. SEBI vide Circular SEBI/HO/MIRSD/MIRSD_CRADT/CIR/P/2021/618 dated August 13,
2021, specified the manner of recording of charges by Issuers and manner of monitoring
and other responsibilities of Debenture Trustees (DTs), Credit Rating Agencies, etc. for
‘Security and Covenant Monitoring’ using Distributed Ledger Technology (DLT).
2. Further, SEBI vide Circular SEBI/HO/MIRSD/CRADT/CIR/P/2022/38 dated March 29,
2022, specified the Operating Guidelines of the said system using DLT, including roles
and responsibilities of the various stakeholders involved.
3. SEBI is in receipt of representations from depositories that issuers have requested for
extension in the timeline of entering the legacy data, viz. details of the existing
outstanding non-convertible securities.
4. On consideration, it has been decided to provide an extension of one month.
Accordingly, it is informed that in modification of the para 8.d of the SEBI Circular dated
March 29, 2022, for existing outstanding non-convertible securities, issuers shall ensure
that they enter the details into the DLT system on or before October 31, 2022; DTs shall
verify the same by December 31, 2022.
Page 1 of 25. This circular is issued in exercise of the powers conferred upon SEBI under Section 11
(1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of
Regulation 2A of the Securities and Exchange Board of India (Debenture Trustees)
Regulations, 1993, Regulation 55 of the Securities and Exchange Board of India (Issue
And Listing Of Non-Convertible Securities) Regulations, 2021, Regulation 29 of the
Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities)
Regulations, 2015, Regulation 48 of SDI Regulations, 2008 and Regulation 20 of SEBI
(Credit Rating Agencies) Regulations, 1999 to protect the interest of investors in
securities and to promote the development of, and to regulate, the securities market.
6. This circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework” and “Circulars”.
Yours faithfully,
Pradeep Ramakrishnan
General Manager
Department of Debt & Hybrid Securities
Email id: pradeepr@sebi.gov.in
Phone: +91-22-26449246
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