TMI BlogDuties of the debenture trusteesX X X X Extracts X X X X X X X X Extracts X X X X ..... s of the respective quarter whichever is earlier; (d) communicate promptly to the debenture holders defaults, if any, with regard to payment of interest or redemption of debentures and action taken by the trustee therefor; (e) appoint a nominee director on the Board of the company in the event of: (i) two consecutive defaults in payment of interest to the debenture holders; or (ii) default in creation of security for debentures; or (iii) default in redemption of debentures. (f) ensure that the company does not commit any breach of the terms of issue of debentures or covenants of the trust deed 10 [ by monitoring the same in the manner specified by the Board ] and take such reasonable steps as may be necessary to remedy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in and satisfy itself that,- (i) in case where the allotment letter has been issued and debenture certificate is to be issued after registration of charge, the debenture certificates have been dispatched by the body corporate to the debenture holders within 30 days of the registration of the charge with the Registrar of Companies; (ii) debenture certificates have been dispatched to the debenture holders or debentures have been credited in the demat accounts of the debenture holders in accordance with the provisions of the Securities and Exchange Board of India (Debenture Trustee) Regulations 1993, Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations 2008, Securities and Exchange Board of India (Lis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Document/Information Memorandum in the manner as may be specified by the Board from time to time. ] 2 [(1A) The debenture trustee shall: (a) obtain reports from the lead bank regarding progress of the project; (b) monitor utilisation of funds raised in the issue; 3 [(c) obtain a certificate from the issuer's Statutory Auditor: (i) in respect of utilisation of funds during the implementation period of the project; and (ii) in the case of debentures issued for financing working capital, at the end of each accounting year.]] (2) A debenture trustee shall call or cause to be called by the body corporate a meeting of all the debenture holders on- (a)a requisition in writing signed by at least one-tenth of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charging its obligations.] 9 [ (6) Before creating a charge on the security for the debentures, the debenture trustee shall exercise independent due diligence to ensure that such security is free from any encumbrance or that it has obtained the necessary consent from other charge-holders if the security has an existing charge, in the manner as may be specified by the Board from time to time. (7) Subject to the approval of the debenture holders and the conditions as may be specified by the Board from time to time, the debenture trustee, on behalf of the debenture holders, may enter into inter-creditor agreements provided under the framework specified by the Reserve Bank of India. ] ********* 1 Substituted ibid. Prior to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on a continuous basis that the property charged to the debentures is available and adequate at all times to discharge the interest and principal amount payable in respect of the debentures and that such property is free from any other encumbrances save and except those which are specifically agreed to by the debenture trustee;] (i) exercise due diligence to ensure compliance by the body corporate, with the provisions of the Companies Act, the listing agreement of the stock exchange or the trust deed; (j) to take appropriate measures for protecting the interest of the debenture holders as soon as any breach of the trust deed or law comes to his notice; (k) to ascertain that the debentures have been converted or redeemed in accorda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. SEBI/LAD-NRO/GN/2020/34 dated 08-10-2020 before it was read as ensure the implementation of the conditions regarding creation of security for the debentures, if any, and debenture redemption reserve; 7. Substituted vide Notification No. SEBI/LAD-NRO/GN/2020/34 dated 08-10-2020 before it was read as (t) In case where listed debt securities are secured by way of receivables/ book debts it shall obtain the following,- (i) On Quarterly basis- (a) Certificate from the Director / Managing Director of the issuer company certifying the value of the book debts / receivables; (b) Certificate from an independent chartered accountant giving the value of book debts / receivables. (ii) On Yearly basis- (a) Certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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