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ARTICLE · 26 AUGUST 2022

SEBI's Enhanced Guidelines On Security Creation And Initial Due Diligence For Debenture Trustees

Khaitan & Co.
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On 04 August 2022, the Securities and Exchange Board of India (SEBI) issued a circular providing for enhanced guidelines for debenture trustees and listed issuer companies on security creation...

IndiaCorporate/Commercial Law
Smita Jha
Smita Jha
Ananda Chakraverty
Ananda Chakraverty
Subham Agarwal
Subham Agarwal
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SEBI's Enhanced Guidelines On Security Creation And Initial Due Diligence For Debenture Trustees

By - Smita Jha (Partner), Ananda Chakraverty (Senior Associate) & Subham Agarwal (Associate), Khaitan & Co

  1. Introduction

On 04 August 2022, the Securities and Exchange Board of India (SEBI) issued a circular providing for enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligence (Latest Circular)1. This is applicable to all issuers who have listed or propose to list their debt securities (Issuer(s)).

This is in furtherance of other existing circulars of 3 November 20202 (Circular 1), 12 November 20203 (Circular 2), and 19 May 20224 (Circular 3) for security creation and due diligence issued by the SEBI. The Circular 1 mandated the requirements for (i) creation of security for listed debt securities (as specified in the information memorandum); (ii) execution of debenture trust deed with the debenture

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