SEBI Consultation Paper on Measures for Reforms to Debenture Trustees Regulations including towards Ease of Doing Business

SEBI has issued a Consultation Paper on Measures for Reforms to Debenture Trustees Regulations including towards Ease of Doing Business. SEBI has invited public comments in respect of the following proposals of EoDB of DTs and also in respect of the revamp of DT Regulations:

1. Specifying Activity Based Regulation for DTs
2. Inclusion of definition of “cross-default” and aggregation of debenture holders across ISINs for voting and decisions in case of shared security interests.
3. Insertion of provisions in DT Regulations specifying Rights of DTs exercisable to aid in performance of their fiduciary duties, obligations, roles & responsibilities and corresponding obligations on the issuer under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”) to enable timely fulfilment of duties by DTs.
4. Modifications to the manner of utilisation of Recovery Expense Fund (REF)
5. Standardisation of the Debenture Trust Deed (DTD).

The comments/ suggestions should be submitted through Online web-based form latest by, November 18, 2024.