Debenture trusteeship

Debenture Trusteeship Services

1. Facilitating documentation, exercising due diligence and ensuring timely creation of security for debt securities.
2. Ensuring creation of security by the issuer and holding the security, including safe custody of documents.
3. Monitoring payment of interest and redemption of principal.
4. Monitoring security cover and other financial covenants.
5. Disseminating rating revisions, interest payment and redemption information through disclosures on the Trustee’s website and with Credit Rating Agencies and Stock Exchanges.
6. Ensuring timely and effective resolution of investor complaints.
7. Ascertaining that debentures have been converted or redeemed in accordance with the conditions under which they were offered to investors.
8. Enforcing security as per the terms of issue and regulatory guidelines.
9. Appointing a nominee director on the Board of the issuer in the event of default.
10. Exercising due diligence to ensure the issuer’s compliance with the provisions of the Companies Act, 2013, SEBI Regulations and the Debenture Trust Deed.

Functions of a Debenture Trustee

• Facilitates creation and registration of security within prescribed timelines.
• Monitors financial covenants, ratings and disclosure requirements.
• Assists the issuer with documentation, stock exchange approvals and compliance.
• Handles investor grievances and ensures timely redressal.
• Coordinates redemption and interest payments, and maintains transparency.
• Appoints a nominee director on the issuer’s board in the event of default.

Benefits

Service information & downloads

• Debenture trustee services brochureOpen document in a new tab↗
• CFSL business presentationOpen document in a new tab↗
• Debenture and security trusteeship pricingOpen document in a new tab↗