SEBI issues framework for Security and Covenant Monitoring using Distributed Ledger Technology of security creation

The SEBI, vide circular dated August 13, 2021, had specified the manner of recording of charges by Issuers and manner of monitoring by Debenture Trustees (DTs). To ensure the uniqueness of assets of the issuer offered as security, SEBI has required DTs to reconcile and eliminate duplicate entries for an asset in the system on yearly basis. SEBI has also standardized the format for unique Asset ID to a 12-digit alphanumeric string.The SEBI, vide circular dated August 13, 2021, had specified the manner of recording of charges by Issuers and manner of monitoring by Debenture Trustees (DTs). To ensure the uniqueness of assets of the issuer offered as security, SEBI has required DTs to reconcile and eliminate duplicate entries for an asset in the system on yearly basis. SEBI has also standardized the format for unique Asset ID to a 12-digit alphanumeric string.taxmann.com Latest Statutory HappeningsRead More

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