The Securities and Exchange Board of India (SEBI) vide
various circulars in October and November 2020 had substantially
streamlined the process of issuance and listing of debt securities.
SEBI through its circular dated 03 November 2020 had specified
comprehensive guidelines for creation of security and due diligence
to be carried out by the debenture trustee (s) in relation to
issuance of listed debt securities (Circular).
The Circular, inter alia, required the debenture
trustee to carry out an independent diligence to ensure that the
assets offered as a security for debt securities are sufficient to
discharge the interest and principal amount with respect to the
debt securities and to provide a due diligence certificate prior to
the issue and post issue in relation to security creation by the
issuer. Further, it required the issuer to create charge on
the security stipulated in the offer document, prior to making the
application for listing of debt securities, with
