The Securities Exchange Board of Board of India has published the Securities and Exchange Board of India (Issue and Listing of Debt Securities) (Amendment) Regulations, 2020 on 08.10.2020. The Amendment provides that every debenture trustee shall accept the trust deeds which shall contain the matters as prescribed under section 71 of Companies Act, 2013 and Form No. SH.12 of the Companies (Share Capital and Debentures) Rules, 2014. Such trust deed shall consist of a Part A containing statutory/standard information pertaining to the debt issue and Part B containing details specific to the particular debt issue.
The amendment strengthens the role of Debenture Trustees (DT(s)) so as to protect the interest of debenture holders. The DT(s) shall exercise independent due diligence of the assets on which charge is being created.
