Why debenture trustee is required?

Zerodha (Trade with the best stock broker)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

A debenture trustee is required to assist the issuer company to oversee the end- to- end NCD issue process from offer letter till settlement of debts. The concept of debenture trustee came into existence due to the difficulties faced by the issuer company to single-handedly deal with each debenture holder for various matters leading to inefficiency in the NCD issue process and an increase in defaults.

Hence was felt the need for a single point of contact who can act as a link between the issuer company and debenture holder for the smooth functioning of the process and protecting the interest of the debenture holders.


Add a public comment...