Section 26 in Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015
26. [ Obligations of debenture trustee. [Substituted by Notification No. SEBI/LAD-NRO/GN/2019/40, dated 27.9.2019 (w.e.f. 15.7.2015).]
(1)The debenture trustee shall be vested with the requisite powers for protecting the interest of holders of municipal debt securities:Provided that, where the issuer is a body corporate to which the Companies Act, 2013 applies such powers shall include a right to appoint a nominee director on the Board of the issuer, in consultation with institutional holders of such securities.(2)The debenture trustee shall carry out its duties and perform its functions in terms of these regulations, the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993, the trust deed and the offer document/placement memorandum, with due care, diligence and loyalty.(3)The debenture trustee shall monitor the separate escrow account maintained in respect of the earmarked revenue.(4)The debenture trustee shall ensure disclosure of all material events on an ongoing basis.(5)The debenture trustee shall supervise the implementation of the obligations cast in terms of provisions of these regulations.]
