Sebi proposes changes in the debenture trustee rules

To protect the interest of the debenture holder, market regulator Securities and Exchange board of India (Sebi) on Thursday has proposed a slew of changes in the existing regulation for the debenture trustee (DT).

The regulator has issued a consultation paper in this regard seeking public comments by March 8.

According to it, a person cannot be appointed as a DT if he beneficially owns shares in the company, is a promoter, director or key managerial person (KMP) or an employee of the company or its holding, subsidiary or associate company.

To enable the DTs to perform the task of securing investors' interest