The Securities and Exchange Board of India (Sebi) has constituted an expert working group to review the regulatory framework governing debenture trusteeship activities amid evolving dynamics in the Indian debt market. According to reports from Business Standard and NDTV Profit, the panel will be chaired by Ananta Barua, former whole-time member of Sebi, with Rajnish Kumar, former chairman of State Bank of India, serving as co-chairperson. The working group comprises representatives from trustee companies, legal firms, industry bodies, rating agencies, SIDBI and Sebi, among others, ensuring comprehensive industry representation.
The working group is tasked with undertaking a comprehensive review of the existing regulatory framework, examining representations and suggestions received from market participants, and recommending measures to strengthen the role of debenture trustees for the effective discharge of their responsibilities. As reported by NDTV Profit, the panel will also review net-worth requirements and suggest changes if required, while examining other matters related to debenture trusteeship activities. Sebi has invited suggestions from stakeholders on simplification, rationalisation, removal of redundancies, and strengthening of the framework by July 15.
According to NDTV Profit, the move comes in view of the evolving landscape of the Indian debt market and the increasing importance of Debenture Trustees in safeguarding the interests of debenture holders. The regulator noted that since the introduction of the Sebi (Debenture Trustees) Regulations, 1993, the financial sector has undergone significant transformation, including the implementation of the Insolvency and Bankruptcy Code, 2016, and the growing participation of investors in the corporate bond market. The expert panel aims to ensure debenture trustees are equipped to effectively discharge their responsibilities in the current market environment.
Other members of the committee include O N Ravi, former general counsel and executive vice-president at CCIL; Rahul Choudhary, managing director and chief executive officer of Axis Trustee Services; Pratapsingh Nathani, managing director and chief executive officer of Beacon Trusteeship; Ashish Pahariya, partner at DSK Legal; and Vinod Kothari, partner at Vinod Kothari & Co, among others. As reported by NDTV Profit, the panel also includes Ajit Nath Jha, SIDBI Vertical Head-Treasury & Resource Management; Pranjal Sharma, The CFO Board Director; Mehul Pandya, CareEdge Ratings MD and Group CEO; and Debashis Bandyopadhyay, Sebi Chief General Manager. Debenture trustees are usually financial institutions, banks, insurance firms, or body corporates registered with Sebi.
