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To,

Issuers  who  have  listed  and/  or  propose  to  list  Non-Convertible  Securities, Securitised

Debt Instruments, Security Receipts, Municipal Debt Securities, or Commercial Paper;

All Recognized Stock Exchanges;

All Depositories;

All Debenture Trustees registered with SEBI;

All Credit Rating Agencies registered with SEBI;

Madam/ Sir,

Sub: Clarification to  SEBI  circular dated  August 04, 2022, on enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligence.

1.    This has reference to circular no. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/106dated August 04, 2022, on “Enhanced guidelines for debenture trustees and listed issuer companies on security creation and initial due diligence”

2.    Representations have been received from Depositories and market participants seeking   clarifications with   respect to para   A.3 and para A.4.6 of   the aforementioned circular, on whether a new ISIN is to be allocated pursuant to:

    i. A change in underlying security;

    ii. Creation of additional security; or

   iii. Creation of security in case of unsecured debt securities.

3.    It is clarified that none of the above cases would constitute a change in the structure of the non-convertible debt securities,  provided there are no  other changes to the terms/ nature of the issue of the non-convertible debt securities like maturity date, coupon rate, face value, redemption schedule, nature of the non-convertible debt securities(secured/unsecured), etc. Accordingly, the Depository shall not assign a new ISIN in such cases. However, where there is a change in the underlying security, the debenture trustee shall ensure compliance with the provisions of  Regulation  15(1)(i) of  SEBI  (Debenture  Trustees)  Regulations, 1993.

4.    This circular is issued in exercise of the powers conferred upon  SEBI  under Section 11 (1) of the SEBI Act, 1992 read with the provisions of Regulation 2A of the SEBI(Debenture Trustees) Regulations, 1993 and Regulation 55 of the SEBI(Issue and   Listing of   Non-Convertible   Securities)   Regulations,   2021   and Regulation 101(1) of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 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 at www.sebi.gov.inunder the link “LegalàCirculars”

Yours faithfully,

Pradeep Ramakrishnan

General Manager Department of Debt and Hybrid Securities

+91-22-26449246

pradeepr@sebi.gov.in