On October 27, 2025, amendments to the SEBI (Debenture Trustees) Regulations, 1993 were notified, introducing Regulation 9C relating to permitted activities for Debenture Trustees, including transfer of activities not regulated by SEBI to separate business units within a specified period. Subsequently, an operational framework prescribing terms and conditions governing such activities was issued through SEBI circular dated November 25, 2025.

The circular states that based on representations received from the industry regarding operational challenges in implementation, an additional period of six months is provided for compliance. Accordingly, Debenture Trustees are required to implement the provisions of the amendment and the circular by October 27, 2026. All other provisions of the SEBI circular dated November 25, 2025 remain unchanged.

1. On October 27, 2025, amendments to the SEBI (Debenture Trustees) Regulations, 1993 (“DT Regulations”) were notified, inter alia introducing Regulation 9C to provide clarity on the scope of permitted activities for Debenture Trustees (DTs). The provision inter-alia stipulates that a debenture trustee holding a valid certificate of registration may transfer its activities that are not regulated by SEBI to separate business unit(s) within a period of six months from the date of notification of the SEBI (Debenture Trustees) (Amendment) Regulations, 2025 in the Official Gazette, or within such extended period as may be specified by the Board.
2. Subsequently, the operational framework, including the terms and conditions governing activities undertaken by debenture trustees, was prescribed vide SEBI circular HO/17/11/12(3)2025-DDHS-POD1/ I/146/2025 dated November 25, 2025.
3. Based on representations received from the industry highlighting operational challenges in establishing the necessary systems and processes for effective implementation, it has been decided to grant additional six months for compliance by the DTs. Accordingly, the provisions of the aforesaid amendment and circular shall be implemented by Debenture Trustees by October 27, 2026.
4. All other provisions of the SEBI Circular dated November 25, 2025 shall remain unchanged.
5. This circular is issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992 and Regulation 2A of SEBI (Debenture Trustees) Regulations, 1993, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.
6. This circular is available on the website of the Securities and Exchange Board of India at www.sebi.gov.in under the category “Legal” and under the drop down “Circulars”.
7. This circular is issued with the approval of the competent authority.