13 August, 2019
By an amendment dated May 7, 2019, SEBI has amended the SEBI (Debenture Trustee) Regulations, 1993 (‘Debenture Trustee Regulations’), to inter alia increase the minimum capital adequacy requirement for a debenture trustee (‘DT’) to be registered as such with SEBI from Rs. 2 crores (approx. USD 300,000) to Rs. 10 crores (approx. USD 1.5 million).
Debenture trustees already registered with SEBI are required to comply with this requirement within 3 years. Additionally, SEBI has clarified that the requirement to convene a meeting of all debenture holders in case of a default in payment obligation by the issuer will not apply in case of debentures issued by way of public issue.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
