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Centralized Database for Corporate Bonds/Debentures

Centralized Database for Corporate Bonds/Debentures

“High Level Expert Committee on Corporate Bonds and Securitization” (“Dr. R.H. Patil Committee”) had recommended creation of “Centralized Database of information regarding Bonds” .  While the information in respect of various bonds/debentures issued by issuers is available in a fragmented manner, it is felt that there is a need for having a comprehensive database on corporate bonds at a single place.

Considering the above, SEBI has issued a circular on “Centralized Database for Corporate Bonds/Debentures” on October 22, 2013. SEBI has mandated both the depositories viz. NSDL and CDSL to jointly create, host, maintain and disseminate the centralized database of corporate bonds/debentures. The depositories shall obtain requisite information regarding the bonds/debentures from Issuers, Stock Exchanges, Credit Rating Agencies and Debenture Trustees. The Database can be accessed by the public or any other users without paying any kind fees or charges which will help to strengthen the debt market in the country. Depositories and stock exchanges shall create awareness among issuers and investors regarding the centralized database.

As per Sebi norms in this regard, the depositories would maintain and disseminate the information in dematerialized form or electronic form. The database for such unlisted securities and provision of data in physical form would be subsequently considered,

Depositories will have adequate systems and safeguards to maintain the integrity of the data and to prevent manipulation of the data. Depository will synchronize the database in consultation and sharing with other depository.

For historical information with respect to debentures/bonds for which ISIN number is already obtained and bond/debenture is still outstanding (historical information), the Depositories shall by 01 December 01 2013 request the Issuers to provide the information. The Issuers shall provide the information to the Depositories by 01 January 2014 in the manner prescribed by Depositories.

 

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