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JC - Insights - Centralized Database for Debt Securities

Insights

09 Jun 2021

Centralized Database for Debt Securities

The disclosure requirements for the issuers of debt securities at the time of allotting of ISIN have been enhanced. The key additions to the existing disclosure requirements include disclosures in relation to Legal Entity Identifier, details of the group companies, type of instruments, addition of scheme of arrangement as a mode of issue and credit enhancement details.

Issuers are also required to provide certain details to the stock exchanges within 1 working day of any change thereof. The details include the listing details, hyperlink of listing notification by stock exchange, details of credit rating, payment status and default history information.

Apart from the issuers, the Circular (as defined below) inter alia casts an obligation on other entities such as (i) credit rating agencies to verify details of credit rating provided by the issuer; (ii) debenture trustees to verify details of default history by the issuer; and (iii) stock exchanges to verify listing related information provided by the issuer.

The amendments have been introduced by the Securities and Exchange Board of India vide circular dated 4th June 2021 (“Circular”) to streamline the centralised database for bonds / debentures issued on or after 1st August 2021. The Circular shall supersede the erstwhile framework.

https://www.sebi.gov.in/legal/circulars/jun-2021/centralized-database-for-corporate-bonds-debentures_50421.html

For any further information, please contact Ms. Apurva Kanvinde (apurva.kanvinde@jclex.com) or Ms. Divya Dhage (divya.dhage@jclex.com).