Circular No. HO/17/11/12(3)2025-DDHS-POD1/I/144/2025; Dated 25.11.2025
1. Overview
The Securities and Exchange Board of India (SEBI) has issued directions standardising the timelines for submission of reports and certificates by issuers to Debenture Trustees (DTs).
These timelines aim to ensure timely monitoring of security, guarantees, and asset cover associated with listed debt securities.
2. Quarterly Submission – Value of Pledged Securities & Security Cover Certificate
Issuers must submit the following on a quarterly basis:
- Statement of value of pledged securities, and
- Security cover certificate
Timeline – Within 60 days from the end of each quarter.
This ensures that DTs have updated information regarding the adequacy and condition of security cover for debenture holders.
3. Half-Yearly Submission – Net Worth Certificate of the Guarantor
Where a guarantee is provided for listed debt securities, the Net Worth Certificate of the guarantor must be furnished.
Timeline – Half-yearly, within 60 days from the end of each half-year.
This allows DTs to verify the continuing financial capability of the guarantor.
4. Once Every Three Years – Valuation Report & Title Search Report
To ensure periodic verification of underlying security, issuers must submit:
- Valuation report, and
- Title search report
Frequency – Once in 3 years
Timeline – Within 60 days from the end of the financial year in which such reports fall due.
These reports help DTs validate security value, ownership, encumbrances, and legal title at regular intervals.
5. Significance
These prescribed timelines will:
- Enhance transparency in monitoring secured debentures
- Enable DTs to take timely action in case of shortfall or deterioration in security
- Strengthen investor protection in the debt market
- Improve compliance discipline among issuers
Click Here To Read The Full Circular
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