SEBI Mandates Two-Stage Due Diligence Certificates from Debenture Trustees for Debt Securities Under Regulation 40.1

SEBI amended regulations regarding due diligence certificates for debenture trustees (DTs) in secured and unsecured debt securities issuance. DTs must now submit standardized due diligence certificates at two stages: first when filing draft offer documents with stock exchanges, and second when submitting listing applications. For unsecured debt securities, new formats specified in Annex-A and Annex-B require DTs to confirm truthful disclosures, covenant details, and execution of trust deeds. The circular modifies Chapter II of Master Circular for DTs, specifically updating paragraphs 2.3.1(a) and 2.3.1(b) to align with SEBI NCS Regulations 40.1(a) and 44(3)(a). These requirements took immediate effect under SEBI's regulatory authority to protect investor interests and regulate securities markets. .....

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