Share Pledge Trustee
A specific form of security trusteeship appointed by lenders specifically to ensure creation of pledge of shares as a security and to hold the shares (whether in demat or physical mode) as security.
The share pledge trusteeship may also include a mandate to act as Monitoring Agent for valuation of shares and calculating Asset Coverage Ratio.
Based on the mandate, the Share Pledge Trustee monitors the valuation of shares, Lenderand advises the lender(s) whether topping up of pledged shares is required (and if so, arrange to get the additional shares pledged as security) or release the pledged shares.
We
- hold the shares as security in demat/physical form on behalf of Lenders as share pledge trustee.
- monitor the compliance laid down in Share Pledge Agreement.
- periodically monitor the valuation of shares on an ongoing basis, if mandated.