SEBI Extends Compliance Deadline for Debenture Trustees to April 2027

The Securities and Exchange Board of India (SEBI) has extended the compliance deadline for debenture trustees to April 27, 2027. This extension allows trustees more time to align their activities outside SEBI's regulatory scope with the amended guidelines. 

Background on SEBI's Amendment 

On October 27, 2025, SEBI introduced amendments to the Debenture Trustees Regulations, 1993. The amendments included Regulation 9C, which clarified the scope of activities permitted for debenture trustees.  

Trustees holding valid registration certificates were initially given 6 months to transfer non-SEBI regulated activities to separate business units. 

Initial Extension and Industry Feedback 

Following industry feedback about operational challenges, SEBI issued a circular on April 28, 2026, granting an additional 6 months for compliance, setting the deadline to October 27, 2026. The industry highlighted difficulties in establishing necessary systems and processes for effective implementation. 

Formation of Expert Working Group 

In June 2026, SEBI formed an Expert Working Group (EWG) to review the regulatory framework for debenture trusteeship activities. The EWG is tasked with examining the Separate Business Unit (SBU) framework and addressing challenges in implementing SBU-related guidelines. 

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Additional Extension Granted 

Considering the ongoing review by the EWG and further representations from debenture trustee associations, SEBI decided to extend the compliance deadline by another 6 months to April 27, 2027. This extension aims to facilitate a smoother transition for trustees in aligning with the new guidelines. 

Regulatory Framework and Compliance 

The operational framework, including terms and conditions for debenture trustees, was detailed in a SEBI circular dated November 25, 2025.  

All other provisions of this circular remain unchanged. SEBI's actions are in line with its mandate to protect investor interests and regulate the securities market. 

Conclusion 

SEBI has extended the compliance deadline for debenture trustees to April 27, 2027, in response to industry feedback and ongoing regulatory reviews. This extension provides additional time for trustees to comply with the amended guidelines. 

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