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[Cites 0, Cited by 0] [Section 10(1)] [Section 10] [Entire Act]

Securities And Exchange Board Of India - Subsection

Section 10(1)(d) in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018

(d)if the issuer proposes to create a charge or security on its assets in respect of secured convertible debt instruments, it shall ensure that:
(i)such assets are sufficient to discharge the principal amount at all times;
(ii)such assets are free from any encumbrance;
(iii)where security is already created on such assets in favour of any existing lender or security trustee or the issue of convertible debt instruments is proposed to be secured by creation of security on a leasehold land, the consent of such lender or security trustee or lessor for a second or pari passu charge has been obtained and submitted to the debenture trustee before the opening of the issue;
(iv)the security or asset cover shall be arrived at after reduction of the liabilities having a first or prior charge, in case the convertible debt instruments are secured by a second or subsequent charge.