SEBI ISSUES RELAXATION IN TIMELINES FOR COMPLIANCE WITH REGULATORY REQUIREMENTS BY DEBENTURE TRUSTEES

The Securities and Exchange Board of India (“SEBI”) via its circular dated May 03, 2021 has decided to provide relaxation in timelines for complying with certain regulatory provisions of SEBI Circular on Monitoring and Disclosures by Debenture Trustee(s) dated November 12, 2020 (“Circular”) for the quarter/half-year/year ending March 31, 202 on account of resurgence of COVID-19 pandemic. Relaxations include-

1. Submission of reports/certifications to Stock Exchanges as per Clause 2.1 of the Circular has been extended to July 15,2021.

   Clause 2.1 of the Circular provides that the Debenture Trustee shall incorporate the terms and conditions of periodical monitoring in the debenture trust deed wherein listed entity shall be liable to provide relevant documents/information, as applicable, to enable the Debenture Trustee(s) to submit the following reports/certification to Stock Exchange(s) within the timelines mentioned below:

   Reports/Certificates	Periodicity
   Asset cover Certificate	Quarterly basis within 60 (sixty) days from end of each quarter
   A statement of value of pledged securities
   A statement of value for Debt Service Reserve Account or any other form of security offered
   Net worth certificates of guarantor (secured by way of personal guarantee)	Half yearly basis within 60 (sixty) days from end of each half-year.
   Financials/value of guarantor prepared on basis of audited financial statement etc. of the guarantor (secured by way of corporate guarantee)	Annual basis within 75 (seventy-five) days from end of each financial year
   Valuation report and title search report for the immovable/movable assets, as applicable.

2. For following disclosures on website as per Clause 4 of the Circular, the timeline has been extended to July 15, 2021:
   1. Monitoring of asset cover certificate and quarterly compliance report of the listed entity.
   2. Monitoring of utilization certificate.
   3. Status of information regarding breach of covenants/terms of the issue, if any action taken by Debenture Trustee.
   4. Status regarding maintenance of accounts maintained under supervision of Debenture Trustee.

   Clause 4 of the Circular cast the obligation on the Debenture Trustee(s) to make the aforementioned disclosures on their websites as per the timelines specified below:

   Disclosure	Periodicity
   Monitoring of asset cover certificate and quarterly compliance report of the listed entity.	Quarterly basis within 60 (sixty) days of end of each quarter
   Monitoring of utilization certificate	Annual basis within 75 (seventy-five) days of the end of the financial year
   Status of information regarding breach of covenants/terms of the issue, if any action taken by Debenture Trustee
   Status regarding maintenance of accounts maintained under supervision of Debenture Trustee

3. Reporting of regulatory compliance as per Clause 5 of the Circular has been extended to May 31, 2021

   Clause 5 of the Circular provides for the reporting of regulatory compliance by the Debenture Trustee. As per the Clause, the Debenture Trustee shall furnish the following reports on a half yearly basis within 30 (thirty) days of the end of each half-year;

   1. Half yearly compliance report.
   2. Details of other activities carried out by Debenture Trustee(s) including type of activity, description of activity etc.
   3. Risk-Based Supervision report.

Please find the circular at https://www.sebi.gov.in/legal/circulars/may-2021/relaxation-in-timelines-for-compliance-with-regulatory-requirements-by-debenture-trustees-due-to-the-covid-19-pandemic_50042.html"