Debenture trustees must validate and monitor security, report defaults promptly, and use a central monitoring system for investor protection. The Master Circular consolidates SEBI directions for Debenture Trustees on registration, governance and detailed operational duties: perform and document independent due diligence at issuance, ensure creation and registration of charges, validate and monitor security cover and covenants using a depository hosted Security and Covenant Monitoring System, issue prescribed due diligence and NOC certificates, report payment/default status to CRAs, Exchanges and Depositories, convene investor meetings for enforcement/ICA with defined notice and majority thresholds, maintain Recovery Expense Fund procedures, publish mandated disclosures and complaint data, comply with outsourcing, conflict of interest and FINNET 2.0 reporting requirements.
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Provisions expressly mentioned in the judgment/order text.
Debenture trustees must validate and monitor security, report defaults promptly, and use a central monitoring system for investor protection.
The Master Circular consolidates SEBI directions for Debenture Trustees on registration, governance and detailed operational duties: perform and document independent due diligence at issuance, ensure creation and registration of charges, validate and monitor security cover and covenants using a depository hosted Security and Covenant Monitoring System, issue prescribed due diligence and NOC certificates, report payment/default status to CRAs, Exchanges and Depositories, convene investor meetings for enforcement/ICA with defined notice and majority thresholds, maintain Recovery Expense Fund procedures, publish mandated disclosures and complaint data, comply with outsourcing, conflict of interest and FINNET 2.0 reporting requirements.
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