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Sebi brings new format for security cover certificate, revises timeline

Sebi brings new format for security cover certificate, revises timeline

With an aim to provide a holistic picture of all borrowings and the status of encumbrance on the assets of listed entities, capital markets regulator Sebi on Thursday came out with a new format for disclosing security cover to stock exchange and debenture trustee.

Also, the regulator has put in place obligations of listed entity and debenture trustee (DT) with respect to preparation and submission of security cover format, according to a circular.


It has specified the manner of preparation of security cover certificate by listed entity and DT.

In addition, Sebi has revised timelines of submission of security cover certificate, valuation report and quarterly compliance report, and regulatory compliance by debenture trustees.

This comes after representations were received from issuers, debenture trustee(s) as well as other market participants on issues related to operational challenges faced in complying with certain provisions of circulars and have also given suggestions on strengthening such requirements.

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