SEBI vide Circular dated November 12, 2020 has prescribed the manner and timeline for debenture trustees to carry out due diligence and monitoring for ‘securities created’ and ‘assets on which charge is created’. Debenture trustee shall incorporate the terms and conditions of periodical monitoring in the debenture trust deed. Following reports and certificates shall be timely submitted:
- Asset cover Certificate
- Statement of value of pledged securities
- Net worth certificate of guarantor
- A statement of value for Debt Service Reserve Account or any other form of security offered
- Financials/value of guarantor prepared on basis of audited financial statement.
- Valuation report and title search report for the immovable/movable assets, as applicable.
