What are the Rights of the NCD Holders?

The right of NCD holders (either secured or unsecured) are the following:

• The NCD holders have the rights to file a lawsuit against the company for interest and principal repayment.
• They can also file an application concerning compulsory dissolution.
• In the case of the company winding up its operations, the NCD holders can claim the principal repayment.

The rights of secured NCD holders:

• Investors can file a lawsuit for compulsory dissolution through the DT (Debenture Trustee).
• They can also file the suit for the sale of property of the company.
• NCD holders can restrict the company after getting an injunction from the court and limit the sale of properties.
• The investors can also appoint a liquidator and get the charge for the repayment purpose if the trustee is permitted.
• If the charged assets of the company are not equal to full payment, the holder can file a lawsuit against the balance payment.