MITCON Credensia acts as a debenture trustee for both publicly issued and privately placed debentures, providing end-to-end trusteeship services in compliance with SEBI (Debenture Trustees) Regulations, 1993.
Our services include:
- Pre-issue and post-issue compliance management
- Monitoring of security creation, perfection, and maintenance
- Periodic monitoring of asset cover and financial covenants
- Quarterly reporting to debenture holders and SEBI
- Enforcement of security in case of default
- Convening debenture holders' meetings as required
Our experienced team works closely with issuers, legal advisors, merchant bankers, and regulators to ensure smooth execution of debenture transactions while safeguarding investor rights.
Scope of Service
- Vetting of the Debenture Trust Deed (DTD), Debenture Trustee Agreement (DTA) and security creation documents
- Verification of due diligence certificate and ensuring creation and perfection of security within the stipulated period
- Holding the security on behalf of the debenture holders for the term of the issue
- Monitoring of security cover, interest payment, redemption schedule and other covenants per SEBI (Debenture Trustees) Regulations, 1993 and SEBI LODR
- Issuance of NOCs, pari passu letters and consent letters in the interest of debenture holders
- Filing of SEBI Half-Yearly Reports and other regulatory submissions on behalf of the trustee
- Convening meetings of debenture holders and acting on their resolutions
- Enforcement of security and recovery action upon default in the interest of debenture holders
Frequently Asked Questions
What is the role of a Debenture Trustee?
A Debenture Trustee is an independent fiduciary appointed by the issuer to safeguard the interests of debenture holders. The trustee holds the security on their behalf, monitors covenants and security cover, ensures timely interest and principal payments, and enforces rights on default — all under the SEBI (Debenture Trustees) Regulations, 1993.
Which regulations govern listed debenture trusteeship?
Primarily the SEBI (Debenture Trustees) Regulations, 1993, read with the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and SEBI LODR Regulations, 2015, along with applicable circulars on continuous disclosures and security creation timelines.
What documents are required to appoint MITCON Credentia as Debenture Trustee?
Typically the Debenture Trustee Agreement (DTA), Debenture Trust Deed (DTD), security documents (mortgage / hypothecation / pledge as applicable), board resolutions of the issuer, information memorandum / placement memorandum, and the due diligence certificate.
Within what time must security be created?
For listed debentures, security creation and perfection must be completed within the timelines prescribed by SEBI — generally within stipulated days from the date of allotment. The trustee monitors this and reports any breach.
What is "security cover" and how is it monitored?
Security cover is the ratio of the value of secured assets to the amount of outstanding debentures. The trustee monitors this on a periodic basis using valuation reports and financial information from the issuer, and reports any shortfall to debenture holders and to SEBI.
What happens if the issuer defaults?
On default, the trustee can call a meeting of debenture holders, accelerate the debentures, and proceed to enforce the security in their interest — including action under the SARFAESI Act, recovery proceedings, or invocation of pledged securities, as the case may be.
What disclosures does the trustee make?
SEBI half-yearly reports on each listed debenture issue, continuous disclosures on defaults and material events, and any other reports prescribed by SEBI for debenture trustees from time to time.
How does MITCON Credentia add value as Debenture Trustee?
Through a senior team with combined banking, legal and trusteeship experience, structured monitoring of covenants and security cover, prompt regulatory filings, and a solution-oriented approach to default management and enforcement.
Have questions about Debenture Trustee?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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