The Securities & Exchange Board of India (SEBI) has mandated Merchant Bankers to publish Investor Charter and Disclosure of Complaints by the Debenture Trustees (DTs) on their websites vide circular dated November 30, 2021. The provisions of this circular shall come into effect from 1st January, 2022.
SEBI has developed an Investor Charter for DTs, inter-alia detailing the services provided to Investors, timelines for various DT services provided, Rights and Obligations of Investors and Grievance Redressal Mechanism.
All the registered DTs shall take necessary steps to bring the Investor Charter to the notice of investor in non-convertible debt securities by way of:
- Disseminating the Investor Charter on their websites/through e-mail
- Displaying the Investor charter at prominent places in offices etc.
Trustee Association of India (TAI) shall also disseminate the Investor Charter on its website. Additionally, in order to bring about transparency in the Investor Grievance Redressal Mechanism, it has been decided that all the registered DTs shall disclose on their respective websites, the data on complaints received against them or in respect of non-convertible debt securities issuances dealt by them and redressal thereof, latest by 7th of succeeding month, as per the prescribed format enclosed in the circular.
