Specification of the terms and conditions for Debenture Trustees for carrying out activities outside the purview of SEBI

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...., provides as follows: "Permitted Activities. 9C. (1) A debenture trustee may also undertake: (a) activities which fall under the purview of any other financial sector regulator specified by the Board, in accordance with the regulations or guidelines issued by such financial sector regulator; and/ or (b) activities that do not fall under the purview of the Board or any other financial sector regulator, which shall be fee-based, non-fund based and pertain to the financial services sector; on an arms-length basis through separate business units of such debenture trustee, in such a manner and subject to such other conditions as may be specified by the Board: Provided that a debenture trustee which is also regulated by the Reserve B....

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....and distinct from the grievance redressal mechanism provided for activities regulated by SEBI and is part of the SBU. 2.3. The DT shall prepare and maintain separate records in the SBU, for the non-SEBI regulated activities. 2.4. The staff of the DT engaged in the non-SEBI regulated activities, should be distinct from the staff handling activities regulated by SEBI. However, the staff can cross the Chinese Wall, subject to due procedures approved by the board of directors of the DT. Such Chinese Wall shall not be applicable for the key managerial personnel. 2.5. The other resources including the information technology infrastructure may be shared between the activities regulated by the Board and activities that are not regulated by the B....

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.... letters, contracts, agreements, and business communication that such activities do not fall within the regulatory purview of SEBI. In this regard, confirmation shall also be obtained from the stakeholders, at the time of engagement, that they have understood the nature of the activity, risks involved and non-availability of any SEBI investor protection mechanism. 2.10. For the existing and ongoing arrangements w.r.t the non-SEBI regulated activities, a DT shall make disclosures, as mentioned at paragraph 2.6 and 2.7 above, and obtain confirmation/ acknowledgement from the stakeholders including clients, beneficiaries and counterparties, and submit a compliance report to the Board, within a period of six months from the date of this circul....