Securities and Exchange Broad of India
CIRCULAR No. CIR/MIRSD/25/2011,
Dated- December 19, 2011
All Debenture Trustees registered with SEBI
Sir / Madam,
Sub: Review of Regulatory Compliance, Periodic Reporting and Contents of Trust Deed
A. Regulatory Compliance
5. Further, according to Circular no. MIRSD/DT/10/2011 dated June 20, 2011, DTs are required to report the changes in their status or constitution. The same information has now been incorporated in the revised format.
B. Contents of Trust Deed
6. SEBI (Debenture Trustee) Regulations, 1993, allow DTs to incorporate additional clauses in the trust deed provided that these clauses do not dilute or contravene the provisions of the clauses specified in the Schedule-IV of the said Regulations. However, it has been observed during inspections that certain clauses are included in the trust deed that limit or extinguish the obligations of DTs in relation to any rights or interests of investors or are in conflict with the provisions of the Regulations. It may be noted that such clauses in the existing or new trust deeds shall not be applicable and shall stand null and void.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
The circular is available on SEBI website (www.sebi.gov.in) under the categories “Legal Framework” and “Circulars”.
Yours faithfully,
Ruchi Chojer
Deputy General Manager
Phone No. 022-26449310
Email id: ruchic@sebi.gov.in
Encl: Annexure
