Market regulator Securities and exchange Board of India (SEBI) on Tuesday extended the timelines for debenture trustees to comply with certain regulatory requirements due to the COVID-19 pandemic.
According to the regulatory norms, debenture trustees are required to perform periodical monitoring and disclose various reports, certificates on stock exchanges and on their websites within ordained timelines.
According to existing framework, debenture trustees were required to make disclosures by 15 July 2021, but as per the extended timeline they have time till 31 August 2021 for certain submissions. For other disclosures, they have been given time till 31 October 2021.
In a circular, the market regulator says “representations have been received from the Debenture Trustees wherein they have expressed the challenges faced in complying with the requirements within the applicable timelines due to the difficulty in information sharing, limited functioning of the various offices and travelling restrictions and imposition of lock-down in most states due to COVID-19”.
For submission of asset cover certificate, statement of the value of pledged securities and statement of value for the debt service reserve account or any other form of security offered, the time has been given till 31 August 2021.
Additionally, the timeline for certain disclosures on their websites has also been extended till 31 August 2021.
Further, SEBI has also extended the time period till 31 October 2021, for submitting the net worth certificate of guarantor (secured by way of personal guarantee), financials/value of guarantor prepared on basis of audited financial statement of the guarantor (secured by way of corporate guarantee) and valuation report and title search report for the immovable/movable assets, to the stock exchanges.