Sebi's new ICA guidelines face execution challenges, experts seek changes

Industry players and legal experts have made a representation to the market regulator seeking amendments to the circular issued on October 13

The Securities and Exchange Board of India’s (Sebi’s) new guidelines that enable holders of listed debentures to enter an inter-creditor agreement (ICAs) face several implementation challenges.

Industry players and legal experts have made a representation to the markets regulator seeking amendments to the circular issued on October 13, which also prescribes procedures to be followed by debenture trustees (DTs).

Among the key clauses in the circular is one that states that DTs can enter ICAs or agree to a resolution plan if it is in the best interest of investors. Also, trustees need to obtain the approval of a majority of investors