Markets regulator Sebi has extended the deadline for debenture trustees to comply with regulatory requirements by six months. The new deadline for compliance is now set for April 27, 2027, as reported by The Economic Times. This extension was granted after receiving industry feedback about operational challenges faced by debenture trustees in establishing the necessary systems and processes. In its latest circular on Tuesday, Sebi stated that it has "decided to grant an additional period of six months (i.e. up to April 27, 2027) to DTs for ensuring compliance with the said requirements". The regulator also noted that "Considering that the EWG is undertaking a comprehensive review of the regulatory framework for DTs, including aspects related to the SBU framework, and further representations received from DT Associations highlighting the challenges in the implementation of SBU-related guidelines, the EWG decided to grant an additional period of six months (i.e. up to April 27, 2027) to DTs for ensuring compliance with the said requirements."
Under Regulation 9C of the Sebi (Debenture Trustees) Regulations, 1993, a debenture trustee holding a valid certificate of registration is required to transfer activities not regulated by the Securities and Exchange Board of India (Sebi) to separate business units within a prescribed timeline. The provision was introduced through amendments notified on October 27, 2025, to provide clarity on the scope of activities permitted for debenture trustees.
Sebi had initially given six months for compliance and subsequently granted an additional six months in April 2026, extending the deadline to October 27, 2026, following industry representations highlighting operational challenges. According to The Economic Times, the additional extension was granted in view of a comprehensive review of the regulatory framework for debenture trustees being undertaken by an Expert Working Group (EWG) constituted in June 2026. The regulator considered representations from debenture trustee associations highlighting challenges in implementing the SBU-related guidelines, leading to the decision to grant the additional six-month compliance period.
The working group is examining the existing regulatory framework applicable to debenture trusteeship activities, including aspects related to the Separate Business Unit (SBU) framework, as well as other incidental matters. As reported by The Economic Times, Sebi considered representations from debenture trustee associations highlighting challenges in implementing the SBU-related guidelines, leading to the decision to grant the additional six-month compliance period. The EWG is undertaking a comprehensive review of the regulatory framework for debenture trustees, including aspects related to the SBU framework, which has contributed to the extension decision.
