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<h1>SEBI mandates disclosure of security creation for secured debt in offer document; assets must be encumbrance-free or permitted.</h1> The Securities and Exchange Board of India (SEBI) regulations require that any proposal to create a charge or security for secured debt securities must be disclosed in the offer document, including its implications. The issuer must also provide an undertaking that the assets used as security are free from encumbrances, or that necessary permissions have been obtained if the assets are already charged. Additionally, the proceeds from the issue must be held in an escrow account until the security creation documents are executed as specified in the offer document.