Securities And Exchange Board Of India - Subsection
Section 15(1) in Securities and Exchange Board of India (Debenture Trustees) Rules, 1993
(1)It shall be the duty of every debenture trustee to-(a)call for periodical reports from the body corporate;(b)[***] [Omitted by the SEBI (Debenture Trustees) (Amendment) Regulations, 2003, w.e.f 4-7-2003.](c)take possession of trust property in accordance with the provisions of the trust deed;(ca)[ supervise the implementation of the conditions regarding creation of security for the debentures and debenture redemption reserve, wherever applicable;] [Inserted by the Amendment to the SEBI (Debenture Trustees) Regulations, 1993 made by Schedule XX to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 w.e.f. 26-08-2009.](d)enforce security in the interest of the debenture holders;(e)do such acts as are necessary in the event the security becomes enforceable;(f)carry out such acts as are necessary for the protection of the debenture holders and to do all things necessary in order to resolve the grievances of the debenture holders;(g)[ascertain and satisfy itself] [Substituted for 'ensure' by the SEBI (Debenture Trustees) (Amendment) Regulations, 2003, w.e.f. 4-7-2003.] that the -(i)[ in case where the allotment letter has been issued and debenture certificate is to be issued after registration of charge, the debenture certificates have been despatched by the body corporate to the debenture holders within 30 days of the registration of the charge with the Registrar of Companies;] [Substituted for the following sub-clause (i) of clause (g) by the SEBI (Debenture Trustees) (Second Amendment) Regulations, 2000, w.e.f. 8-8-2000.](ii)debenture certificates have been despatched to the debenture holders in accordance with the provisions of the Companies Act;(iii)interest warrants for interest due on the debentures have been despatched to the debenture holders on or before the due dates;(iv)debenture holders have been paid the monies due to them on the date of redemption of the debentures;(h)[ ensure on a continuous basis that the property charged to the debentures is available and adequate at all times to discharge the interest and principal amount payable in respect of the debentures and that such property is free from any other encumbrances save and except those which are specifically agreed to by the debenture trustee;] [Substituted by the SEBI (Debenture Trustees) (Amendment) Regulations, 2003, w.e.f. 4-7-2003.](i)exercise due diligence to ensure compliance by the body corporate, with the provisions of the Companies Act, the listing agreement of the stock exchange or the trust deed;(j)to take appropriate measures for protecting the interest of the debenture holders as soon as any breach of the trust deed or law comes to his notice;(k)to ascertain that the debentures have been converted or redeemed in accordance with the provisions and conditions under which they are offered to the debenture holders;(l)inform the Board immediately of any breach of trust deed or provision of any law;(m)[ appoint a nominee director on the Board of the body corporate in the event of: [Inserted by the SEBI (Debenture Trustees) (Second Amendment) Regulations, 2000, w.e.f, 8-8-2000.](i)two consecutive defaults in payment of interest to the debenture holders; or(ii)default in creation of security for debentures; or(iii)default in redemption of debentures;(n)communicate to the debenture holders on half yearly basis the compliance of the terms of the issue by the body corporate, defaults, if any, in payment of interest or redemption of debentures and action taken therefor.]
