Monitoring and Periodical reporting of the compliance with the requirements pertaining to ‘Security and Covenant Monitoring’ system hosted by Depositories
Summary
This circular mandates depositories to ensure periodic monitoring of compliance with the Security and Covenant Monitoring system requirements. Depositories are required to report instances of non-compliance to SEBI on a quarterly basis within one month of the quarter's end. The provisions of this circular became effective from April 01, 2023.
Text
Depositories shall ensure periodic monitoring regarding compliance with the requirements of various circulars pertaining to ‘Security & Covenant Monitoring System’ issued by SEBI from time to time, including the circulars dated August 13, 2021 and March 29, 2022, and shall also bring to the notice of SEBI, any instances of non-compliance, on a quarterly basis, not later than one month from the end of the quarter, in the format specified as under:
The provisions of this circular shall come in force from April 01, 2023.
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.
Source: SecMarx — Monitoring and Periodical reporting of the compliance with the requirements pertaining to ‘Security and Covenant Monitoring’ system hosted by Depositories. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.