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TMI BlogSimplified Debt Listing Agreement for Debt Securities - AmendmentsX X X X Extracts X X X X X X X X Extracts X X X X ..... marized as under: (a). 100% Asset Cover: To align the Listing Agreement with the provisions of the Companies Act, 1956, the amended Listing Agreement requires issuers to maintain 100% asset cover sufficient to discharge the principal amount at all times for the debt securities issued. Further, to provide more information to investors, the periodic disclosures to the stock exchange shall now require disclosure of the extent and nature of security created and maintained. (b). Submission of certificate on maintenance of security: As against half-yearly certifications on security cover in respect of listed secured debt securities, the amended Listing Agreement provides for submission of such certificates regarding maintenance of 100% asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar. In case of the last half year, issuers may opt to submit their annual audited results in lieu of the unaudited financial results for the period, within 60 days from the end of the financial year. 3. Since Part-A of the Listing Agreement for debt is applicable for debt issuers with already listed equity, it is clarified that the covenants in the Equity Listing Agreement that require submission of a draft offer document to SEBI for observations or obtaining of an acknowledgement card are not applicable in case of an issue of debt securities which is made in terms of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008. 4. The amendments made to the simplified listing agreement for debt securities vide this circular shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the SEBI (Issue of Listing of Debt Securities) Regulations 2008, shall not be applicable in respect of this Listing Agreement. Provided further that the issuer who has submitted any information to the Exchange in compliance with the disclosure requirements under the equity Listing Agreement, need not re-submit any such information under this Listing Agreement without prejudice to any power conferred on the Exchange or SEBI or any other authority under any law to seek any such information from the issuer." 2. In clause 2, for sub-clause (d), the following sub-clause shall be substituted, namely:- "(d) a half-yearly certificate regarding maintenance of 100% asset cover in respect of listed debt securities, by either a practicing com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry or a practicing chartered accountant, along with the half yearly financial results. Provided that submission of such half yearly certificates is not applicable in cases where an issuer is a Bank or NBFC registered with RBI or where bonds are secured by a Government guarantee." 6. In clause 16, for sub-clause (a), the following sub-clause shall be substituted, namely:- "(a) In respect of its listed debt securities, the Issuer agrees that it shall maintain 100% asset cover sufficient to discharge the principal amount at all times for the debt securities issued and shall disclose to the exchange on half-yearly basis and in their annual financial statements, the extent and nature of security created and maintained." 7. Sub-clause (b) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Exchange for the time being in force. Provided that 50% (fifty per cent) of the above mentioned security deposit should be paid to the Exchange in cash. The balance amount can be provided for by way of a bank guarantee. Provided further that the amount to be paid in cash is limited to ₹ 3crores." 10. For sub-clause 27 (b), the following sub-clause shall be substituted, namely:- "(b) A half-yearly communication, counter signed by debenture trustee, along with the half yearly financial results, containing, inter alia, following information: (i) credit rating; (ii) asset cover available; (iii) debt-equity ratio; (iv) previous due date for the payment of interest/ principal and whether the same has been paid or not; and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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