Debenture / Bond Trusteeship

Wherever any Company issues the Debenture / Bonds for a period of 12 months or more, it needs to compulsorily appoint Debenture / Bond Trustee under extant SEBI Guidelines.

Main purpose / role of appointing Debenture / Bond Trustee is to create security on behalf of all the investors of Debentures / Bonds, to monitor the payment of interest & principal, creation of DRR, maintenance of Asset Coverage Ratio etc, and enforcement of security in case of need for protecting the interest of all Debenture / Bond holders.

We STCL are SEBI registered Debenture / Bond Trustee. We undertake public issues as well as private placement of debentures, bonds and other securities.

We STCL, ensure

  • compliance of terms of security stipulation by the Issuer
  • to protect the interests of Debenture Holders / Bond Holders.
  • to create a security within a stipulated period of time
  • to redress grievances of the Debenture Holders / Bond holders effectively
  • creation and maintenance of Debenture Redemption Reserve by issuer till final redemption
  • maintenance of adequate asset coverage ratio in terms of the issue by the issuer
  • effective handling of investor complaints
  • convening the Debenture Holder / Bond Holder meetings when so requested by requisite majority Debenture Holders / Bond Holders
  • to enforce the security at the behest of the Debenture Holder / Bond Holders
  • to inform the Debenture Holders if there is any downgrade revision in the credit rating of Debentures / Bonds or the Issuer by Rating Agencies.