With an aim to protect the interest of investors, capital markets regulator Sebi has strengthened the role of debenture trustees asking them to independently evaluate and monitor the asset cover.
The decision comes as several defaults were seen in the debt markets.
To give this effect, Sebi has amended debenture trustee norms and ILDS (Issue and Listing of Debt Securities Regulations), the regulator said in two separate notifications on Thursday.
Under the new norms, debenture trustees (DTs) would exercise independent due diligence of the assets on which charge is being created.