Security and covenant monitoring requires depositories to perform quarterly compliance checks and report instances of noncompliance to regulator. Depositories must periodically monitor compliance with SEBI circulars on the Security & Covenant Monitoring System using Distributed Ledger Technology, identify non compliance by issuers, debenture trustees, credit rating agencies and other stakeholders, and submit quarterly reports to the regulator in the prescribed format containing ISIN, stakeholders' compliance status, reference to relevant provisions, reasons for non compliance and date or expected date of compliance; the reporting regime is made operable from the circular's applicability date under the regulator's statutory powers.