Regulation 38 - Other Obligations of the Lead Manager - Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021

Other Obligations of the Lead Manager 38. (1) The lead manager shall not employ any device, scheme, or artifice to defraud in connection with issue or subscription or distribution of debt securities and non-convertible redeemable preference shares which are listed or proposed to be listed on a recognized stock exchange. 1 [ (2) The lead manager shall ensure that the secured debt securities are secured by hundred percent security cover or higher security cover as per the terms of the offer document and/or Debenture Trust Deed, sufficient to discharge the principal amount and the interest thereon at all times for the issued debt securities. ] (3) The lead manager shall ensure payment of additional interest by the issuer in accordance with these regulations in case of non-allotment of debt securities and non-convertible redeemable preference shares. ************* NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/77 dated 11-04-2022 before it was read as, (2) The lead manager shall ensure that secured debt securities are secured by hundred percent security cover.