Disclosures of Defaults in Payment of dues to Banks/Financial Institutions by Listed Entities

                                                                                                                                                             

Disclosures of Defaults in Payment of dues to Banks/Financial Institutions by Listed Entities

1.             Applicability:

This circular is applicable to all listed entities which have listed any of their specified securities (equity and convertible securities), Non-convertible Debt (“NCD”) and Non-Convertible Redeemable Preference Shares (“NCRPS”).

2.             Definition of default for the purpose of this circular:

·         In case of loans from banks/financial institutions or NCD or NCRPS, default will be considered if company fails to pay interest / dividend or principal in full on the pre-agreed payment date.

·         In case of revolving facilities like cash credit from banks/financial institutions, default wound be considered if the outstanding balance remains unpaid continuously for more than 30 days in excess of the sanctioned limit or drawing power, whichever is lower.

3.             Due date of disclosures:

a.       In case of loans from banks/financial institutions:  Disclosure shall be made promptly but not later than 24 hours from 30^th day of default.

b.      In case of revolving facilities like cash credit from banks/financial institutions: Disclosure shall be made promptly, but not later than 24 hours from the 30^th day of such default.

c.       In case of unlisted debt securities: Disclosure shall be made promptly but not later than 24 hours from the occurrence of the default.

4.             Which defaults to disclose:  Disclosure of defaults is to be given in the prescribed format by following entities:

a.       Entities having Equity or convertible securities listed:

a.       default in payment of interest / installment obligations on loans, including revolving facilities like cash credit, from banks / financial institutions and

b.      Default with respect to unlisted NCDs and unlisted NCRPS.

b.      Entities having listed their NCD’s /NCRPS/ Commercial paper:

a.       Disclosure of defaults as are applicable to entities that have equity or convertible securities listed [(i.e. 4(i)(a) and 4(i)(b)] of this newsletter.

b.      Disclosure of default pertaining to listed NCD/listed NCRPS/listed commercial paper to continue as per respective regulations.

5.             Initial Disclosure:  Initial disclosure of default needs to be given on 1^st January 2020 in format C1 and Initial quarterly disclosure for listed entities is to be given by 7^th January 2020 in format ‘C2’.

6.             These initial and quarterly disclosures are to be given if there are outstanding defaulted loans including revolving cash credit facility or outstanding defaulted debt securities as on 31^st December 2019. As far as disclosures pertaining to default of listed NCDs/listed NCRPS/listed commercial paper are concerned, the same would continue to be made as per present SEBI regulations and circulars.