Sebi Proposes Shift from 'Consent Letter' to 'Debenture Trustee Agreement' for Enhanced Transparency

To improve transparency and legal validation in debenture trustee appointments, Sebi has proposed to replace the term 'consent letter' with 'debenture trustee agreement'. This change aims to streamline the process, ensuring trustees' roles and obligations are clearly communicated to investors through the offer document using a QR code.

The Securities and Exchange Board of India (Sebi) has announced a proposal to replace the term 'consent letter' with 'debenture trustee agreement' in its regulations governing non-convertible securities.

This shift is designed to legally validate and streamline the appointment of debenture trustees, increasing transparency and aiding investors in making well-informed decisions. The new debenture trustee agreement will play a crucial role by clearly outlining the trustee's responsibilities and obligations.

Sebi further stated that the debenture trustee agreement will be accessible through a QR code in the offer document, providing investors with easy access to the information. The proposal, part of efforts to enhance ease of doing business in the financial sector, is open for public comments until September 6.

(With inputs from agencies.)