Sebi Panel to Review Debenture Trustee Rules '' Investor Protection

New Delhi, Jun 30 (PTI) Markets watchdog Sebi has constituted an expert working group, chaired by former Whole Time Member Ananta Barua, to comprehensively review the regulatory framework governing debenture trustees and recommend measures to strengthen their role in protecting the interests of debenture holders.

The panel has been formed in view of the "evolving landscape of the Indian debt market and the increasing importance of Debenture Trustees in safeguarding the interests of debenture holders," Sebi said in a statement on Tuesday.

The working group will be co-chaired by former State Bank of India Chairman Rajnish Kumar.

The regulator said the financial sector has undergone significant changes since the introduction of the Sebi (Debenture Trustees) Regulations, 1993, including the implementation of the Insolvency and Bankruptcy Code, 2016, and the growing participation of investors in the corporate bond market.

The expert panel has been tasked with undertaking a comprehensive review of the existing regulatory framework governing debenture trustees, examining representations and suggestions received from market participants, and recommending measures to strengthen the role of debenture trustees for the effective discharge of their responsibilities.

It will also review the net-worth requirements applicable to debenture trustees and suggest changes, if required, besides examining other matters related to debenture trusteeship activities.


The working group comprises representatives from trustee companies, legal firms, industry bodies, rating agencies, SIDBI and Sebi, among others.

Other members of the working group include former CCIL General Counsel and Executive Vice President ON Ravi, Axis Trustee Services MD and CEO Rahul Choudhary, Beacon Trusteeship MD and CEO Pratapsingh Nathani, DSK Legal Partner Ashish Pahariya, and Vinod Kothari & Co Partner Vinod Kothari.

Additionally, a representative from the Finance Industry Development Council (FIDC), SIDBI Vertical Head-Treasury & Resource Management Ajit Nath Jha, The CFO Board Director Pranjal Sharma, CareEdge Ratings MD and Group CEO Mehul Pandya, and Sebi Chief General Manager Debashis Bandyopadhyay are the members of the panel.

Meanwhile, Sebi has invited suggestions from the public, market participants and other stakeholders on the existing regulatory framework governing debenture trustees.

The regulator said the suggestions may cover simplification and rationalisation of regulations, removal of redundant provisions, updating norms in line with market developments, strengthening the role and responsibilities of debenture trustees and improving ease of compliance.

Sebi asked stakeholders to submit their suggestions in the prescribed format by July 15.