TMI BlogOmittedX X X X Extracts X X X X X X X X Extracts X X X X ..... e rights of the debenture holders and the manner in which these rights are vested in the trustee. Description of instruments 2. This section shall inter alia state the purpose of raising finance through debenture issue, description of debentures as regards amount, tenure, interest/coupon rate, periodicity of payment, period for redemption, options available, terms of conversion/redemption of the debentures in terms of the issue to the debenture holders, debt equity ratio and debt service coverage ratio, if applicable. Details of Charged Securities (Existing or future) 3. This section shall inter alia state the details regarding the following: i. Nature of charge, examination of title. ii. Rank of charge of assets viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gations of body corporates 6. This section shall inter alia state the following with respect to company s duties: 1. to maintain Register of debenture holders with addresses with record of subsequent transfers and changes of ownership. 2. to keep proper books of account open for inspection by debenture trustee. 3. to furnish whatever required information to debenture trustee including copies of reports, balance sheets, profit and loss accounts etc. 4. to keep charged property/security adequately insured and in proper condition. 5. to permit debenture trustee to enter and inspect the state and condition of charged assets. 6. to pay all taxes, cesses, insurance premia with respect to charged property/security, on time. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut unpaid and reasons thereof; (iii) the number and nature of grievances received from debenture holders and resolved by the body corporate; (iv) a statement that the assets of the body corporate which are available by way of security are sufficient to discharge the claims of the debenture holders as and when they become due. 7. Miscellaneous a. Procedure for appointment and removal of trustee including appointment of new trustees. b. Provision that the debenture trustee shall not relinquish from its assignment unless another debenture trustee has been appointed. c. Procedure to remove debenture trustee by debenture holders providing for removal on a resolution passed by at least 75% of the total debenture holders of a b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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