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TMI BlogClarification on monitoring of Interest/ Principal repayment and sharing of such information with Credit Rating Agencies by Debenture TrusteesX X X X Extracts X X X X X X X X Extracts X X X X ..... l by the issuer companies on or before the due dates of such repayment[Regulations 15(1)(g)]. Further, the DTs are also required to share information available with them regarding client companies, with registered Credit Rating Agencies (CRAs) [Clause 13 of Code of Conduct read with Regulation 16]. Moreover, the nature of such information to be shared with the CRAs has been clarified in the SEBI Circular CIR/MIRSD/3/2013 dated March 15, 2013 which, inter-alia, includes information pertaining to event of any default in payment of interest or redemption amount and non-cooperation by the issuer company with respect to furnishing required information. 2. It is clarified that the DTs shall have adequate systems to ascertain the status of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany, debenture holders and quarterly reports submitted by Issuer Companies. 4. The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 require the listed entity to submit a certificate to the stock exchange within two days of the interest or principal of the listed debt securities becoming due that it has made timely payment [Regulation 57(1)] and the DT Regulations mandate the DTs to exercise due diligence to ensure compliance by the body corporate, with the provisions of the Companies Act, the listing agreement of the stock exchange or the trust deed [Regulation 15(1)(i)]. In this regard, it is clarified that the DTs in their communication to the Issuer Companies as mentioned in point no. 2(i) above shall info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Securities and Exchange Board of India Act, 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003. 6. The Regulation 15(1)(a) of the DT Regulations requires the DTs to call for periodical reports from the body corporate. In order to make the quarterly reports by the issuer companies available to the DTs on timely basis, it is clarified that the DTs shall call for periodical status/ performance reports from the issuer company within 7 days of the relevant board meeting or within 45 days of the respective quarter whichever is earlier. 7. In terms of SEBI Circular MIRSD/DPS III//Cir- 11/07 dated August 6, 2007, the DTs shall disclose the information to the investors and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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