Operational guidelines for ‘Security and Covenant Monitoring’ using Distributed Ledger Technology (DLT)

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....ed Ledger Technology (DLT) 1. SEBI vide Circular numbered SEBI/HO/MIRSD/MIRSD_CRADT/CIR/P/2021/618 dated August 13, 2021, specified the manner of recording of charges by Issuers and manner of monitoring by Debenture Trustees (DTs), Credit Rating Agencies, etc. and responsibilities thereof. Accordingly, with effect from April 01, 2022, the recording of asset details (and their verification), allotment, listing and payment of interest or redemption shall be available in the system. 2. As the backbone of the DLT system would be uniqueness of assets recorded in the DLT system, a system generated unique identifier (Asset ID) shall be allotted for each asset offered by Issuer as security for the non-convertible securities. For data exchange....

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....f the issuer, DTs, on a yearly basis, will reconcile the list of assets recorded in the system for an Issuer and in case any duplicate entry is found for an asset, it shall take necessary steps to eliminate such duplicate entries in the system and verify security cover thereof and take remedial action, if required. b. Any event which reduces the security cover below the mandated/ stipulated limit, as per regulation 54 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, shall be updated by the issuer in the system immediately. Such event shall be termed as 'trigger event' and depositories shall send such trigger events' alerts to all the concerned stakeholders. 7. Further, the following clauses in SEBI Ci....

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....ired to enter the details into the DLT system on or before September 30, 2022 and DTs shall verify the same by November 30, 2022. 9. This circular is issued in exercise of the powers conferred upon SEBI under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 2A of the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993, Regulation 55 of the Securities and Exchange Board of India (Issue And Listing Of Non-Convertible Securities) Regulations, 2021, Regulation 29 of the Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015, Regulation 48 of SDI Regulations, 2008 and Regulation 20 of SEBI (Credit Rating Ag....

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....gency identifier. h. Code along with Code Description in ERP (Enterprise Resource Planning) system of the issuer, wherever available. i. Code along with Code Description in FAR (Fixed Asset Register) of the issuer, wherever available. j. Validity/ Expiry date, if any. k. Encumbrance/ lien details, if any. 2. Specific additional parameters for certain asset types: In addition to the above, following parameters shall also be captured for these specific asset types and sub-types. Sr. No. Asset Type Asset Sub Type Parameters to compare for Duplicate check 1. Immovable Property All (Residential, Commercial, Industrial, Agriculture, etc.) a. Area of the property b. Geograp....