SEBI Issues Circular for Clarification of Guidelines for Debenture Trustees and Listed Issuer Companies on Security Creation and Initial Due Diligence

On 19th December 2022, the Securities Exchange Board of India (SEBI) issued a Circular in regard to a previously issued Circular No. – SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/106 on “Enhanced Guidelines for Debenture Trustees and Listed Issuer Companies on Security Creation and Initial Due Diligence” , issued on 04th August 2022.

The Circular states that SEBI has received Representations from Depositories and market participants seeking clarifications in regard to para A.3 and para A.4.6 of the previously issued Circular, particularly if the new ISIN is to be allocated under –

• A change in the underlying security,
• Creation of additional security, or
• Creation of security in case of unsecured debt securities.