BANKING AFFAIRS

Detailed explanation-1: -Q. A debenture trust deed is an agreement between the company and the trustees to look after the interest of which of the following? Notes: A debenture trust deed is an agreement between the company and the trustees to look after the interest of debenture holders.

Detailed explanation-2: -A debenture is an instrument of debt executed by the company acknowledging its obligation to repay the sum at a specified rate and also carrying an interest. It is one of the methods of raising the loan capital of the company.

Detailed explanation-3: -(6) A debenture trustee shall take steps to protect the interests of the debenture-holders and redress their grievances in accordance with such rules as may be prescribed.

Detailed explanation-4: -A debenture trust deed is an instrument that a company executes in favour of a debenture trustee, thereby appointing them and defining their role and duties to protect the interest of debenture holders before debentures are offered for public subscription.

Detailed explanation-5: -The document created by the company, whereby trustees are appointed to protect the interest of debenture-holders before they are offered for public subscription is known as Debenture Trust Deed.