SEBI has, by way of Circular dated November 12, 2020 provided that in order to enable a DT to discharge its obligations in respect of listed debt securities, the DT must undertake independent periodical assessment of the compliance with covenants or terms of the issue of listed debt securities including for ‘security created’. In this regard, under the Circular, SEBI has provided monitoring and disclosure requirements by DTs which have come into force with effect from the quarter ended December 31, 2020 for listed debt securities, the key features of which are set out below:

i.     Monitoring of ‘security created’ / ‘assets on which charge is created’: DTs will carry out due diligence for creation of security at the time of issuance of debt securities and on a continuous basis and carry out periodical monitoring as prescribed under the Circular. The terms of periodical monitoring are required to be included in the debenture trust deed, and SEBI has prescribed a timeline within which debenture trust deeds for existing listed debt securities are to be amended / supplemented;

ii.    Disclosure on website by DT: The DT will make the disclosures as specified under the Circular, on a continuous, quarterly, half-yearly and yearly basis, on its website; and

iii.   Reporting of regulatory compliance: Earlier formats for periodical reporting by DTs have been rescinded and the DTs are now required to furnish revised periodical reports to SEBI in the formats as prescribed under the Circular.