BANKING AFFAIRS

Detailed explanation-1: -The Debenture Trustee holds the secured property on behalf of issuer of security and for benefit of debenture holders.

Detailed explanation-2: -Who is a debenture trustee? Debenture Trustee is appointed by way of Debenture Trust Deed to safeguard debenture holders’ interests and to address their grievances. Debenture trustee is appointed before prospectus or letter of allotment is issued or within 60 days after the allotment of debentures.

Detailed explanation-3: -5. Who appoints a debenture trustee? A debenture trustee is appointed by the issuer company. They are SEBI registered and regulated entities.

Detailed explanation-4: -(2) Subject to the provisions of this Act, the functions of the debenture trustees shall generally be to protect the interest of holders of debentures (including the creation of securities within the stipulated time) and to redress the grievances of holders of debentures effectively.

Detailed explanation-5: -Debentures Trustee can approach NCLT: Debenture Trustees have to redress the grievances of debenture holders. If the company defaults in repaying the principal amount, on maturity or defaults in paying interest there on, the Debenture Trustees can approach the National Company Law Tribunal for redressal.