Latest News | Sebi Issues Operational Guidelines for Covenant Monitoring with DLT
Get latest articles and stories on Latest News at LatestLY. Markets watchdog Sebi on Tuesday issued the operational guidelines for security and covenant monitoring using Distributed Ledger Technology (DLT).
New Delhi, Mar 29 (PTI) Markets watchdog Sebi on Tuesday issued the operational guidelines for security and covenant monitoring using Distributed Ledger Technology (DLT).
In August 2021, the regulator had specified the manner of recording of charges by issuers and manner of monitoring by Debenture Trustees (DTs) and Credit Rating Agencies, among others.
Also Read | Amazon Smbhav Summit 2022 to Be Held on May 18-19.
As the backbone of the DLT system would be uniqueness of assets recorded in the system, a unique identifier (asset ID) would be allotted for each asset offered by an issuer as security for the non-convertible securities.
For data exchange and verification across depositories, format for unique asset ID would be a 12-digit alphanumeric string.
Also Read | Amazon Glow Now Available for All Customers in the US.
The DLT system would provide an alert to the issuer and the DT by having appropriate validation/ duplicate checks in the system for identifying possible duplicate entries for assets of an issuer, Sebi said in a circular.
To begin with, certain assets would be tracked at portfolio level and no specific parameters for the underlying assets would be captured. It would include movable assets such as furniture and equipment, and current assets like portfolio of advances/ receivables.
All issuers proposing to issue non-convertible securities on or after April 1 should record the details in the system before activation of ISIN.
"For existing outstanding non-convertible securities, issuers will be required to enter the details into the DLT system on or before September 30, 2022 and DTs shall verify the same by November 30, 2022," Sebi said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)