Regulation 10 - Additional requirements for issue of convertible debt instruments
Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018 Part II ISSUE OF CONVERTIBLE DEBT INSTRUMENTS AND WARRANTS
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Convertible debt issuance: issuers must secure credit rating, debenture trustee, redemption reserve and unencumbered asset cover. Issuance requirements for convertible debt instruments mandate that an issuer obtain a credit rating, appoint at least one debenture trustee, and create a debenture redemption reserve. For secured issues, charged assets must be sufficient to discharge principal, free from encumbrances, and prior lenders' consent for second or pari passu charges must be obtained and furnished to the debenture trustee; asset cover for subsequent charges is to be calculated after reducing prior-charge liabilities. Redemption is to follow the offer document.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Convertible debt issuance: issuers must secure credit rating, debenture trustee, redemption reserve and unencumbered asset cover.
Issuance requirements for convertible debt instruments mandate that an issuer obtain a credit rating, appoint at least one debenture trustee, and create a debenture redemption reserve. For secured issues, charged assets must be sufficient to discharge principal, free from encumbrances, and prior lenders' consent for second or pari passu charges must be obtained and furnished to the debenture trustee; asset cover for subsequent charges is to be calculated after reducing prior-charge liabilities. Redemption is to follow the offer document.
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