Summary of Notification in Companies Act, 2013 issued on 21/05/2019 and Circular issued by SEBI on 27/05/2019 are provided below:
- MCA Notification on Insolvency and Bankruptcy Board of India (Salary, Allowances and other Terms and Conditions of Service of Chairperson and members) Third Amendment Rules, 2019.
Through this notification, MCA has omitted sub-rule(2) in Rule 3 of Insolvency and Bankruptcy Board of India (Salary, Allowances and other Terms and Conditions of Service of Chairperson and members) Rules, 2016, which prescribed the tenure for which Chairperson and whole-time member of the Board, who were appointed to fill-up a causal vacancy, shall hold office. Read more…
- SEBI Circular on Securities and Exchange Board of India (Listing Obligations And Disclosure Requirements), 2015, Securities and Exchange Board of India (Issue and Listing of Debt Securities) (Amendment) Regulations, 2019 and Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2019
Through this circular, SEBI prescribes guidelines to govern the Debenture Trustees (DTs) so as to protect the interests of the investors in listed debt securities. The guidelines mandate that DTs
- disclose on its website compensation arrangements entered into by it with its clients
- display on its website, ISIN wise calendar details of interest/ redemption, due and paid and update in case of any delay with remark “delayed payment”.
- keep their records updated with the details of debenture holders forwarded by RTA/Issuers during and after the allotment.
- to include additional covenants on default in payment and listing, as part of issuer details in the term sheet between issuer and investor. This is to be incorporated for term sheets issued and/or agreement executed on or after May 7, 2019. Read more…