Section 13A in Securities and Exchange Board of India (Debenture Trustees) Rules, 1993
13A. Debenture Trustee not to act for an associate.
- [No debenture trustee shall act as such for any issue of debentures in case-(a)it is an associate of the body corporate, or(b)it has lent and the loan is not yet fully repaid or is proposing to lend money to the body corporate:Provided that this requirement shall not be applicable in respect of debentures issued prior to the commencement of the Companies (Amendment) Act, 2000, where-(i)recovery proceedings in respect of the assets charged against security has been initiated, or(ii)the body corporate has been referred to Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985,prior to commencement of the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2003.]
