The Securities and Exchange Board of India has constituted an Expert Working Group to conduct a comprehensive review of the regulatory framework for debenture trusteeship activities. The move is intended to align the regime with changes in the Indian debt market, including the greater importance of debenture trustees in protecting debenture holders and the evolution of the financial sector since the SEBI Debenture Trustees Regulations, 1993 were introduced. The group is chaired by former SEBI whole-time member Ananta Barua and co-chaired by former State Bank of India chairman Rajnish Kumar. Its mandate includes reviewing the existing framework, examining representations and suggestions from market participants, recommending measures to strengthen the role of debenture trustees, and reassessing net-worth requirements for debenture trustees. SEBI linked the review to market developments such as the Insolvency and Bankruptcy Code, 2016 and growing investor participation in the corporate bond market. SEBI has also invited suggestions from the public, market participants and other stakeholders on simplification, rationalisation and strengthening of the debenture trustee framework. The call for input covers streamlining provisions, removing redundancies, updating regulations to reflect market developments, enhancing the role and responsibilities of debenture trustees, and ease of compliance, with submissions due by July 15, 2026.

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