Regulatory Alerts2025-11-25
Modifications to Chapter IV of the Master Circular for Debenture Trustees dated August 13, 2025
The Securities and Exchange Board of India (SEBI) has modified Chapter IV of the Master Circular for Debenture Trustees to explicitly define the permissible uses of the Recovery Expense Fund (REF). The amendments allow Debenture Trustees to be reimbursed from the REF for enforcement and legal proceedings without prior debenture holder consent, provided the expenses fall within specified categories such as filing court applications and legal fees. Additionally, the circular establishes a streamlined process where Designated Stock Exchanges must release funds within five working days upon receipt of intimation and an auditor's certificate, while requiring annual updates on fund utilization.
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