Listing Unsecured Debt

In his recent column in the Business Standard, Somasekhar Sundaresan discusses the existence of certain ambiguities in interpreting the SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and the special listing agreement for debt securities, which make it unclear whether listed corporate bonds should necessarily be secured to the full extent of the debt amount or whether those debentures can be unsecured or secured for a lesser amount.

About the author

Umakanth Varottil

Umakanth Varottil is an Associate Professor at the Faculty of Law, National University of Singapore. He specializes in corporate law and governance, mergers and acquisitions and cross-border investments. Prior to his foray into academia, Umakanth was a partner at a pre-eminent law firm in India.


  • If you read the Debty regulations carefully, you will find that the debt raised can be secure as well as it can be unsecured. If in case, it is secured it has to be fully (or 100%) secure- there is no scope for say, 10% or 20% or say 90% debt to be secured- it has to 100% secured. To this extent I find no ambiguity in the SEBI Regulations.

  • If you read Debt regulations carefully, you would find that there is no ambiguity in the regulations. If we carefully read regulations, we would find that debt can be secured as well as unsecured, in case if the debt is secured-it has to be 100% secured, if in any case the debt is to be secured it cannot be say 10% or say 20% or say 99% secured…it has to be 100% secured.

  • This is really nice post and very useful for the users,In finance, unsecured debt refers to any type of debt or general obligation that is not collateralize by a lien on specific assets,Keep it up.

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