MITCON Credensia acts as debenture trustee for unlisted debentures issued by body corporates on a private placement basis. We perform the contractual trustee role of monitoring security, servicing and covenants under the debenture trust deed and related documents.
Scope of Service
- Vetting of the Debenture Trust Deed (DTD), Debenture Trustee Agreement (DTA) and security documents
- Monitoring creation and perfection of security within the stipulated time
- Holding the security on behalf of the debenture holders
- Monitoring of security cover and other covenants as per the transaction terms
- Issuance of NOCs / pari passu letters as required
- Assistance in enforcement of security in case of default
Frequently Asked Questions
What is an unlisted debenture?
An unlisted debenture is a debt instrument issued on a private placement basis that is not listed on any recognised stock exchange.
Is the trustee for unlisted debentures regulated by SEBI?
No. Trusteeship for unlisted debentures does not fall within SEBI's regulatory purview, and SEBI investor-protection mechanisms are not available for such activities.
Why appoint a trustee for unlisted debentures?
A trustee provides independent monitoring of security and covenants and acts in the interest of holders, giving investors added comfort even outside the listed framework.
What does the trustee monitor?
The trustee monitors creation and perfection of security, security cover, and compliance with the covenants set out in the transaction documents.
What documents are required?
The Debenture Trust Deed, Debenture Trustee Agreement, security documents, board resolutions and related declarations from the issuer.
What happens on default?
The trustee assists in enforcement of security and takes the actions permitted under the transaction documents to protect holders' interests.
How are grievances handled?
As these services are outside the SEBI framework, grievances are addressed contractually and through MITCON Credensia's internal grievance mechanism for non-SEBI services.
Have questions about Debenture Trustee (Unlisted)?
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