DEBENTURE TRUSTEES
Centre to pick up bond dues tab for MTNL
The government will pay MTNL bond interest, preventing a sovereign default after MTNL failed to deposit in an escrow account. Borrowers will be compensated per Department of Economic Affairs rules by July 20. MTNL's debt restructuring, involving ₹28,000-30,000 crore, includes staff transfers to BSNL and retirements. MTNL raised ₹2,480 crore in July 2023 via non-convertible debentures at 7.59% interest. The Department of Telecommunications and Beacon Trusteeship oversee payments. India Ratings downgraded MTNL to 'IND D', with a pre-default government guarantee.
Sebi invites public comments on proposed amendments to REIT, InvIT rules
Capital markets regulator Sebi on Tuesday said it has sought public views on the proposed amendments to the master circulars for REITs and InvITs. In a consultation paper, Sebi said these amendments will provide clarity on the nomination rights of directors to the boards of REIT (Real Estate Investment Trusts) and InvIT (Infrastructure Investment Trusts) managers.
Sebi issues new guidelines to streamline operations of credit rating agencies
Markets regulator Sebi has issued new guidelines to streamline operations and enhance the ease of doing business for credit rating agencies. The circular introduces specific timelines for dealing with appeals made by companies regarding rating actions carried out during periodic surveillance of ratings.
Sebi streamlines process for public issue of debt securities
Further, the minimum subscription period has been cut from 3 to 2 working days, and the listing timeline has been reduced from T+6 to T+3 working days, which will be initially optional for one year and mandatory thereafter, Sebi chief Madhabi Puri Buch said in a press conference.
SBICAP Trustee Company pays Rs 25 lakh to Sebi to settle debenture trustee rules violation case
SBICAP Trustee Company Ltd on Wednesday settled with markets regulator Sebi a case pertaining to alleged violation of debenture trustees rules after paying Rs 25 lakh towards settlement amount.
Yield on SP Co's ₹14,300cr NCDs Surges
Goswami Infratech's NCDs yield surged to 22% due to SP Group's debt raise, linked to SIPL's interest rate, triggering early redemption event, approved for extension until Sept 2024.
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Beacon Trusteeship IPO to open on May 28; sets price band at Rs 57-60/ share
Leading debenture trustee Beacon Trusteeship Ltd on Wednesday said it is aiming to raise a little over Rs 32 crore through its initial share-sale opening for public subscription on May 28.
Restructuring impacts even the smallest player: 5 not so much talked about PSU banks
When it comes to PSU banks, all the limelight is taken by the top players, like SBI, BoB, PNB and one or two others. But the fact is that there are many other small PSU banks, which of course have smaller books and less of national presence, but the fact is that they have been also the beneficiary of the “ reconstruction and restructuring" (R&R) which both government and RBI have done in the banking sector in the last seven years. The good part of any R&R exercise in banking is that all the players whether it is small or large have to follow the rules and that ensures that the operating matrix improves across the sector and which leads to long term beneficial impact. We take a look at 5 small PSU banks, which are not normally in news, but over years they have also seen an improvement in their working. Yes, they have their own risks in terms of loan book and other business risk, but then because they are under owned in institutional space, a bit of institutional buying can lead to sharp re-rating.
Sebi proposes easing disclosure rules for non-convertible securities issuance
To promote ease of doing business for issuance of non-convertible securities, Sebi on Thursday proposed removing the requirement to disclose the PAN and personal address of issuers' promoters in the offer document along with other relaxations in disclosure guidelines.
SAT stays Sebi ban on Catalyst’s trustee services to funds
The Securities Appellate Tribunal (SAT) has stayed a Securities and Exchange Board of India (Sebi) order banning Catalyst Trustee from providing trustee services to funds.
Debenture trustee seeks waiver on bond terms for Shapoorji Pallonji's Afcons proposed IPO
Goswami Infratech Pvt Ltd (GIPL) raised Rs 14500 crore in bonds in June last year, and one of the covenants of the bond was that the yields on the bonds would increase by 2% if the company failed to monetise Afcons before June 2024.
Adani Enterprises, Adani Energy amend articles of association
As per the Securities and Exchange Board of India (Sebi) norms, corporate issuers of listed debt must ensure that their articles of association have a provision for debenture trustees to nominate a board director. In July, Sebi had clarified that even in cases where issuers were not structured as companies, there will be an obligation on them to appoint a nominee director.
Sebi notifies stricter delisting rules for non-convertible debt securities
In case of delisting pursuant to a resolution plan as per the provisions of the Insolvency Code, the details of delisting of non-convertible debt securities will be disclosed to the stock exchanges within one working day of the approval of the resolution plan under the Insolvency Code
RBI asks rating agencies details of cos hiding info used for credit assessment
Rating agencies either rely on publicly available data or withdraw the rating of such borrowers who refuse to disclose financials and other information.
Sebi allows direct mkt access facility to FPIs for participating in exchange traded commodity derivatives
Indian capital markets regulator Sebi has allowed exchanges to extend direct market access (DMA) to foreign portfolio investors (FPIs) to participate in exchange-traded commodity derivatives (ETCDs). Following discussions with its Commodity Derivatives Advisory Committee, Sebi said it had decided to allow stock exchanges to extend the DMA to FPIs in ETCDs based on representations received and subject to certain conditions. Sebi permitted FPIs to participate in cash-settled non-agricultural commodity derivative contracts in September 2022, while alternate investment funds, portfolio management services and mutual funds were given permission in 2017.
HC allows trustees bodies to approach CCI on jurisdiction issue
A division bench of Justices GS Patel and Neela Gokhale in its oral order directed the fairtrade regulator to decide on the issue of its jurisdiction first, leaving other contentions open. Till the time CCI decides on its jurisdiction, there will be a stay on its investigation in the matter. The detailed order was not uploaded till press time.
Sebi clarifies in respect of compliance with rules by first-time issuers of debt securities
In view of the difficulties posed to first-time issuers, Sebi has asked stock exchanges to take an undertaking from such issuers that they will ensure that their AoA are amended within a period of six months from the date of the listing of the debt securities.
Debenture trustees incur risks, fees they charge isn't 'cartelisation', argues Sebi
Sebi made these inferences in a special examination report that it had to submit to the Bombay High Court. The matter would be heard by a division bench of Justice GS Patel and Justice SG Dige on January 4.
Sebi to reduce time taken for registration of FPIs to facilitate ease of doing business
With regards to foreign investors, Sebi said its approved proposals regarding procedural requirements for on-boarding FPIs in order to further reduce the time taken for granting registration to such investors.
Sebi extends time till month-end for entering details of existing non-convertible securities
The regulator, in August 2021, asked depositories to use blockchain technology to record and monitor security creation as well as covenants of non-convertible securities.
IDBI Trusteeship faces Rs 1-lakh fine for non-compliance of debenture trustee norms
Accordingly, by failing to conduct inspection of the books of accounts, records, registers of FHHPL, the noticee has violated DT (Debenture Trustees) Regulations. She also noted that the noticee had not taken any reasonable and necessary steps to fulfil its obligations, and hence can be made liable for the neglect and failure of FHHPL.
Sebi strengthens guidelines for debenture trustees
The regulator also said that before initiating due diligence, a DT and the listed entity will have to enter into an amended debenture trust agreement with respect to security creation, initial due diligence and continuous monitoring by the DT concerned.Post carrying out the initial due diligence, the DT would have to issue a no-objection certificate to the issuer company for going ahead with proposed change in the structure or creation of security.
Debenture Trustees Stall CCI Probe, but Now Under Sebi Lens
The court put a temporary stay on the CCI investigation and asked Sebi to provide its opinion on the matter. The case is likely to be heard in the first week of July. An email sent to Sebi remained unanswered."While the court had asked for Sebi's views, in the meantime the market regulator has initiated a probe into the matter," said a person cited above. "Sebi has already asked the trustees to provide an extensive list of documents that explain how the pricing formula was arrived upon."
Sebi nudges MCA for exemption to nominees of debenture trustees
In the recent past, there have been instances where the directors appointed by debenture trustees have been disqualified from holding any directorship under the Companies Act since the companies defaulted on their compliance obligations.
Sebi comes out with new format for security cover certificate, revises timeline
In addition, Sebi has revised timelines of submission of security cover certificate, valuation report and quarterly compliance report, and regulatory compliance by debenture trustees.
Sebi amends debenture trustee norms
Sebi has revised rules pertaining to debenture trustee norms, apart from issue and listing of non-convertible securities norms and LODR (Listing Obligations and Disclosure Requirements) rules, according to three separate notifications issued on Monday.
Sebi tells trustees to follow its norms in votes on resolution
Sebi rules say that all bondholders have to vote for a resolution to pass. That is contrary to the IBC rules, which allow voting to be done even if 75% of the bondholders participate. Following a go-ahead by a single-judge bench of the Bombay High Court, a majority of bondholders that own more than 90% of the debt in RCFL, voted in favour of a plan by Authum Investment & Infrastructure Ltd, ET reported in December.
Scheme of arrangement: Sebi provides clarity on NOC submission from banks, DTs
Under the rules, listed entities desirous of undertaking a scheme of arrangement are required to submit certain documents to the exchanges
Sebi tweaks guidelines for processing of draft schemes filed with exchanges
Sebi on Thursday clarified on guidelines for processing of draft schemes pertaining to mergers and demergers filed by listed companies with the stock exchanges.
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