Clarification to SEBI circular dated August 04, 2022 on enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligence
Summary
This circular clarifies that changes in underlying security, creation of additional security, or creation of security for unsecured debt do not constitute a change in the structure of non-convertible debt securities. Consequently, depositories are instructed not to assign new ISINs for these specific scenarios provided other terms remain unchanged. The clarification is issued under the powers conferred by Section 11(1) of the SEBI Act, 1992 and related regulations.
Text
It is clarified that, none of the above cases would constitute a change in the structure of the non-convertible debt securities... Accordingly, Depository shall not assign a new ISIN in such cases.
However, where there is a change in the underlying security, the debenture trustee shall ensure compliance with the provisions of Regulation 15(1)(i) of SEBI (Debenture Trustees) Regulations, 1993.
Source: SecMarx — Clarification to SEBI circular dated August 04, 2022 on enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligence. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.