The Securities and Exchange Board of India vide its press release dated 3rd November 2021, has directed the debenture trustees to disassociate themselves from undertaking activities related to unregulated products, such as digital gold.
Earlier, SEBI had restrained funding advisers and stockbrokers from dealing in digital gold.
It has come to the notice of SEBI that some registered debenture trustees are undertaking activities related to unregulated products such as acting as a trustee for digital gold. Undertaking activities related to unregulated products such as digital gold is not in accordance with the provisions of Section 12(1) of the SEBI Act, 1992 read with the SEBI (Debenture Trustees) Regulations,1993.
Further, any dealing in activities related to the unregulated products by Debenture Trustees may entail action as deemed appropriate under the SEBI Act, 1992 and regulations framed thereunder.
