Debenture/Bond Trustee
Under the applicable SEBI guidelines, in the event of issue Debentures/Bonds having a tenure of 12 months or more, the trustee is required to be compulsorily appointed to ensure;
creation of the security, to monitor the payment of interest & redemption of principal, creation of DRR, maintenance of Asset Coverage Ratio etc, and in case of necessity, to enforce the security for protecting the interest of the Debenture/Bond holders.
In case of listed Debenture/Bond issues, the Trustee is required to exercise due-diligence with respect to security offered to ensure that the assets offered are sufficient to discharge the interest and principal amount of the debt.
We ensure
- compliance of terms of security stipulation by the Issuer.
- to protect the interests of Debenture Holders/Bond Holders.
- to redress grievances of the Debenture Holders/Bond Holders effectively.
- creation and maintenance of Debenture Redemption Reserve by Issuer till final redemption.
- maintenance of adequate asset coverage in terms of the issue by the Issuer.
- convening the Debenture Holder/Bond Holder meetings when so requested by requisite majority Debenture Holders/Bond Holders.
- to enforce the security at the behest of the Debenture Holder/Bond Holders.
- to inform the Debenture Holders if there is any downgrade revision in the credit rating of Debentures/Bonds or the Issuer by Rating Agencies.