CIRCULAR
SEBI/HO/DDHS/RACPOD1/CIR/P/2023/0002 January 05, 2023
To,
Issuers who have listed and/ or propose to list Non-Convertible Securities, Securitised
Debt Instruments, Security Receipts, Municipal Debt Securities or Commercial Paper;
Recognized Stock Exchanges;
All Debenture Trustees registered with SEBI;
All Credit Rating Agencies registered with SEBI;
All Depositories registered with SEBI
Madam/ Sir,
Sub: Monitoring and Periodical reporting of the compliance with the requirements
pertaining to ‘Security and Covenant Monitoring’ system hosted by Depositories
1. SEBI vide Circular SEBI/HO/MIRSD/MIRSD_CRADT/CIR/P/2021/618 dated August 13,
2021 specified the manner of recording of charges by Issuers and manner of monitoring
and other responsibilities of stakeholders for ‘Security and Covenant Monitoring’ using
Distributed Ledger Technology (DLT). Further, vide circular
SEBI/HO/MIRSD/CRADT/CIR/P/2022/38 dated March 29, 2022 the Operating
Guidelines of the said system using DLT, including roles and responsibilities of the
various stakeholders involved, were specified.
2. Depositories shall ensure periodic monitoring regarding compliance with the
requirements of various circulars pertaining to ‘Security & Covenant Monitoring System’
issued by SEBI from time to time, including the circulars dated August 13, 2021 and
March 29, 2022, and shall also bring to the notice of SEBI, any instances of non-
compliance, on a quarterly basis, not later than one month from the end of the quarter,
in the format specified as under:
ISIN Stakeholders involved & their Reference to Reasons/ Date of
status of compliance the provision of remarks for compliance
the relevant such non- / expected
circulars compliance date of
pertaining to compliance
non-compliance
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<Name of the
Issuer>
<Name of the
Debenture Trustee>
<Name of the Credit
Rating Agency>
3. Applicability: The provisions of this circular shall come in force from April 01, 2023.
4. This circular is issued in exercise of the powers conferred upon SEBI under Section 11
(1) of the Securities and Exchange Board of India Act, 1992 read with the provisions of
Regulation 2A of the Securities and Exchange Board of India (Debenture Trustees)
Regulations, 1993, Regulation 55 of the Securities and Exchange Board of India (Issue
And Listing Of Non-Convertible Securities) Regulations, 2021, Regulation 29 of the
Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities)
Regulations, 2015, Regulation 48 of SDI Regulations, 2008 and Regulation 20 of SEBI
(Credit Rating Agencies) Regulations, 1999 to protect the interest of investors in
securities and to promote the development of, and to regulate, the securities market.
5. This circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework” and “Circulars”.
Yours faithfully,
Pradeep Ramakrishnan
General Manager
Department of Debt & Hybrid Securities
Email id: pradeepr@sebi.gov.in
Phone: +91-22-26449246
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