The Securities and Exchange Board of India (SEBI), on November 04, 2024, issued a Consultation Paper on Measures for Reforms to Debenture Trustees Regulations including towards Ease of Doing Business.
The consultation paper seeks public input on proposed revisions to the SEBI (Debenture Trustees) Regulations, 1993, aimed at promoting Ease of Doing Business (EoDB) and reducing compliance costs, following the FY 2023-24 budget announcement by the Finance Minister.
The following has been stated-
•Activity-Based Regulation: Introducing regulations tailored to specific activities of Debenture Trustees (DTs).
•Definition of "Cross-Default": Including a clear definition and guidelines for aggregating debenture holders across ISINs for voting and decision-making when security interests are shared.
•Rights of DTs: Specifying the rights of DTs to perform their duties effectively, with corresponding issuer obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
•Recovery Expense Fund (REF): Modifying the usage of the REF to streamline recovery processes.
•Standardisation of Debenture Trust Deed (DTD): Creating a standardized format for DTDs to enhance uniformity and compliance.
Comments on the Consultation paper may be sent by November 18, 2024 via this link.
