MITCON Credensia acts as a Share Pledge Trustee, holding pledged shares and securities on behalf of lenders and monitoring the pledge through the life of the facility. Where listed securities are pledged, we monitor valuation against the agreed cover and issue top-up notices as required.
Scope of Service
- Vetting of the pledge agreement and related documents
- Creation and perfection of the pledge in the depository system
- Holding the pledged securities on behalf of the lenders
- Daily / periodic valuation and monitoring of pledged listed shares
- Issuance of top-up notices when cover falls below the agreed threshold
- Support for invocation of the pledge on default per lender instructions
Frequently Asked Questions
What is a Share Pledge Trustee?
A trustee that holds pledged shares and securities on behalf of lenders and monitors the pledge through the life of the facility.
Why is a share pledge trustee appointed?
To provide independent holding and monitoring of pledged securities and to act on lender instructions, including invocation on default.
Is this service SEBI-regulated?
No. Share pledge trusteeship is a non-SEBI regulated service, so SEBI investor-protection mechanisms do not apply.
How is the pledge monitored?
Where listed shares are pledged, their value is monitored against the agreed cover and top-up notices are issued if cover falls short.
What is a top-up notice?
A notice requiring the borrower to provide additional securities when the value of the pledged shares falls below the agreed cover ratio.
What happens on default?
The trustee supports invocation of the pledge in accordance with lender instructions and the pledge documents.
Have questions about Share Pledge Trustee?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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