Sebi Extends Deadline For Debenture Trustees To Comply With Norms Until April 2027
The extension follows a review of the regulatory framework by an Expert Working Group constituted in June 2026. The group is examining the Separate Business Unit framework and related issues, while industry associations have raised concerns about implementation challenges.
Sebi grants debenture trustees six additional months to comply with rules on activities outside its regulatory purview | File Pic
New Delhi, October 27, 2026: Markets regulator Sebi on Tuesday extended the deadline by six months, till April 27, 2027, for debenture trustees to comply with requirements governing activities that fall outside its regulatory purview.
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.
Deadline Extended For Six Months
Sebi had initially given six months for compliance. Subsequently, in April 2026, the regulator granted an additional six months, extending the deadline to October 27, 2026, following industry representations highlighting operational challenges in establishing the necessary systems and processes.
In its latest circular on Tuesday, Sebi said it had “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”.
Working Group Reviewing Regulatory Framework
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 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.
The regulator also considered representations from debenture trustee associations highlighting challenges in implementing the SBU-related guidelines.
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“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,” Sebi said.
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