Regulatory Alerts2025-11-25
Specification of Terms and Conditions for Debenture Trustees Carrying Out Activities Outside SEBI Purview
The Securities and Exchange Board of India (SEBI) issued this circular to specify the terms and conditions under which Registered Debenture Trustees may undertake activities not regulated by SEBI or other financial sector regulators. The regulations mandate that such activities must be conducted through separate business units with strict Chinese walls, distinct staff, and separate grievance redressal mechanisms to ensure arms-length operations. Additionally, debenture trustees are required to provide explicit written disclosures to stakeholders regarding the lack of SEBI investor protection and submit compliance reports within six months of the circular's issuance.
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