Press Release No. 37/2026, Dated 30.06.2026
SEBI has constituted an Expert Working Group to undertake a comprehensive review of the regulatory framework governing Debenture Trustees. The review will include the existing provisions under the SEBI (Debenture Trustees) Regulations, 1993.
The move is aimed at strengthening the role of Debenture Trustees and ensuring that the regulatory framework remains aligned with market developments and investor protection requirements.
1. Comprehensive Review of Debenture Trustee Framework
The Expert Working Group will examine the existing regulatory framework applicable to Debenture Trustees.
This includes reviewing the SEBI regulations, operational requirements, compliance obligations, and the role of Debenture Trustees in protecting debenture holders’ interests.
2. Examination of Stakeholder Representations
The Working Group will consider representations and feedback received from various stakeholders.
This will help identify practical challenges, regulatory gaps and areas where the framework may require clarification or strengthening.
3. Strengthening the Role of Debenture Trustees
One of the Working Group’s key objectives is to recommend measures to strengthen the role of Debenture Trustees.
Debenture Trustees play an important role in monitoring issuers’ obligations, safeguarding investors’ interests, and ensuring compliance with the terms of debenture issuances.
4. Review of Net-Worth Requirements
The Working Group will also review the net-worth requirements applicable to Debenture Trustees.
Based on its assessment, it may suggest changes to ensure that Debenture Trustees have adequate financial capacity to discharge their responsibilities effectively.
5. Public Comments Invited
SEBI has invited public comments on the existing regulatory framework for Debenture Trustees.
Stakeholders may submit their comments and suggestions up to 15.07.2026.
6. Objective of the Review
The review seeks to:
- Strengthen the regulatory framework for Debenture Trustees;
- Enhance investor protection in the debt securities market;
- Review the adequacy of existing obligations and responsibilities;
- Assess the financial capacity requirements for Debenture Trustees;
- Address stakeholder concerns; and
- Suggest amendments, wherever required.
7. Expected Impact
The review is expected to help improve the effectiveness, accountability and regulatory oversight of Debenture Trustees. It may also lead to amendments in the existing regulations to better align the framework with the evolving debt market ecosystem.
8. Key Takeaway
SEBI has constituted an Expert Working Group to review the regulatory framework governing Debenture Trustees, including the SEBI (Debenture Trustees) Regulations, 1993. The Working Group will examine stakeholder representations, suggest measures to strengthen the role of Debenture Trustees, review net-worth requirements and recommend changes, if required. Public comments on the existing framework may be submitted till 15.07.2026.
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