Periodical Report- Grant of prior approval to Debenture Trustees
Summary
This circular clarifies that while prior SEBI approval is no longer required for changes in status or constitution, it remains mandatory for changes in control of Debenture Trustees. It mandates that all registered Debenture Trustees report specific corporate changes, such as amalgamations and director changes, in their quarterly reports starting from the quarter ended June 30, 2011. The directive is issued under Section 11(1) of the SEBI Act to protect investor interests and regulate the securities market.
Text
With the said amendment, the requirement of taking prior approval by the Debenture Trustees from SEBI for change in status or constitution has been dispensed with. However, the Debenture Trustees are required to take prior approval from SEBI for change in control.
Pursuant to the aforesaid notification, commencing from the quarter ended June 30, 2011, all Debenture Trustees shall report the following change(s) to SEBI in the quarterly reports submitted in accordance with SEBI Circular No. MIRSD/DPS-2/DT/Cir-14/2008 dated May 06, 2008.
Amalgamation, demerger, consolidation or any other kind of corporate restructuring falling within the scope of section 391 of the Companies Act, 1956 (1 of 1956) or the corresponding provision of any other law for the time being in force
Change in Director, including managing director/ whole-time director
Change in shareholding not resulting in change in control
If there is no change during the relevant quarter, it shall be indicated in the report.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Periodical Report- Grant of prior approval to Debenture Trustees. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.