Sebi on Monday proposed that debenture trustees separate non-market watchdog-regulated activities into a new legal entity and define "cross-default" to clarify their roles in shared security interests. Additionally, the new provisions have been proposed to outline debenture trustees' (DT) rights and responsibilities, aligning with their fiduciary duties and obligations under Sebi's Listing Obligations and Disclosure Requirements (LODR) Regulations. These changes aim to support timely fulfillment of DT duties. The regulator has proposed changes to how the Recovery Expense Fund is used, which supports debenture recovery processes and suggested to standardize the format of Debenture Trust Deeds to streamline documentation. These proposals are aimed at improving ease of doing business for debenture trustees. In its consultation paper, the regulator proposed that DTs should hive off non-Sebi-regulated activities into a new legal entity, which cannot use the DT's brand name after a one-