India’s Securities and Exchange Board of India (Sebi) extended the debenture trustee deadline by six months to April 27, 2027, giving registered trustees more time to separate activities outside the regulator’s purview into distinct business units.

Debenture trustee deadline and scope

The extension, announced on October 27, 2026, applies to requirements under Regulation 9C of the Sebi Debenture Trustees Regulations, 1993. The provision requires a trustee with a valid registration certificate to transfer activities not regulated by Sebi to separate business units.

Sebi introduced the provision through amendments notified on October 27, 2025, to clarify the activities permitted for debenture trustees.

Review and implementation challenges

Trustees were initially given six months to comply. In April 2026, Sebi extended the deadline to October 27, 2026, after industry representations cited operational challenges in establishing the necessary systems and processes.

For the latest extension, Sebi cited a comprehensive review by an expert working group constituted in June 2026. The group is examining the regulatory framework for debenture trusteeship, including the separate business unit framework.

The regulator also considered further representations from debenture trustee associations about challenges in implementing the guidelines.

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