Sebi extends compliance deadline for debenture trustees till April 2027

The provision was introduced through amendments notified on October 27, 2025, to provide clarity on the scope of activities permitted for debenture trustees. Sebi had initially given six months for compliance. Subsequently, in April 2026, the regulator granted an additional six months, extending the deadline to October 27, 2026, following industry representations highlighting operational challenges in establishing the necessary systems and processes.

In its latest circular on Tuesday, Sebi has "decided to grant an additional period of six months (i.e. up to April 27, 2027) to DTs for ensuring compliance with the said requirements". The additional extension was granted in view of a comprehensive review of the regulatory framework for debenture trustees being undertaken by an Expert Working Group (EWG) constituted in June 2026. The working group is examining the existing regulatory framework applicable to debenture trusteeship activities, including aspects related to the Separate Business Unit (SBU) framework, as well as other incidental matters.

The regulator also considered representations from debenture trustee associations highlighting challenges in implementing the SBU-related guidelines. "Considering that the EWG is undertaking a comprehensive review of the regulatory framework for DTs, including aspects related to the SBU framework, and further representations received from DT Associations highlighting the challenges in the implementation of SBU-related guidelines, the EWG decided to grant an additional period of six months (i.e. up to April 27, 2027) to DTs for ensuring compliance with the said requirements," Sebi said. Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Oct 27 2026 | 11:59 PM IST