Capital markets regulator Sebi on Monday stated it has issued operational pointers for safety and covenant monitoring utilizing Distributed Ledger Technology (DLT).
In August, the regulator specified the way of recording of prices by issuers and method of monitoring by debenture trustees, credit standing companies and obligations, amongst others. The measures have been aimed to strengthen the method of safety creation and monitoring of safety created, asset cowl and covenants of the non-convertible securities.
With impact from April 1, 2022, the recording of asset particulars and their verification, allotment, itemizing and cost of curiosity or redemption has been made out there within the DLT system.
The spine of the DLT system is uniqueness of property recorded within the system and to make sure uniqueness of the property of the issuer supplied as safety, applicable validation or duplicate checks based mostly on parameters recognized for every asset kind have been put in place within the system, Sebi stated in a press release on Monday.
Further, for knowledge alternate and verification throughout depositories, format for distinctive asset ID assigned to an asset has been standardised to a 12-digit alphanumeric string.
Debenture Trustees (DTs), on a yearly foundation, may also reconcile and eradicate duplicate entries for an asset within the system.
To start with, movable property — furnishings, gear, stock — and sure different property could be tracked on the portfolio stage.
Relaxation has been supplied until July 1 to issuers who’re unable to report particulars within the system after offering clarification to depositories, submit which ISIN shall not be allotted to an issuer for non-compliance.
For current excellent non-convertible securities, issuers should enter the main points into the DLT system earlier than September 30, Sebi stated.
Source: www.financialexpress.com”