SEBI Releases Master Circular for Debenture Trustees: Consolidates Norms on Risk Management, Due Diligence & Security Monitoring

The Securities and Exchange Board of India (SEBI) issued a comprehensive master circular consolidating guidelines for debenture trustees. The circular outlines responsibilities related to risk management, continuous monitoring of security cover, asset valuation, fund flow tracking, and due diligence during issuance and tenure of debentures. By standardizing norms, SEBI aims to streamline trustee oversight, bolster investor protection, and enhance transparency in debt markets. The updated framework also clarifies procedures for periodic reporting and escalation mechanisms, reinforcing regulatory expectations on trustee accountability and vigilance. (Word count: ~110)