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Securities And Exchange Board Of India (Debenture Trustees) Rules, 1993

Securities And Exchange Board Of India (Debenture Trustees) Rules, 1993

Published vide Notification Gazette of India, Extra, Part 2, Section 3(i), dated 29.12.1993

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G.S.R. 788 (E), dated 29th December, 1993.- In exercise of the powers conferred by section 29 of the Securities and Exchange Board of India, Act 1992, (15 of 1992), the Central Government hereby makes the following rules, namely :-

  1. Short title and commencement.-(1) These rules may be called the Securities and Exchange Board of India (Debenture Trustees) Rules, 1993.

(2) They shall come into force on the date of their publication in the Official Gazette.

  1. Definitions.-In these rules, unless the context otherwise requires -

(a) "Act" means the Securities and Exchange Board of India, Act 1992 (15 of 1992);

(b) "body corporate" means a body corporate as defined in clause (7) of Section 2 of the Companies Act, 1956 (1 of 1956);

(c) "certificate" means a certificate of registration granted or renewed by the Board under theregulations;

(d) "debenture" means a debenture, as defined in clause (12) of Section 2 of the Companies Act, 1956 (1 of 1956);

(e) "debenture trustee" means a trustee of a trust deed for securing any issue of debentures of a body corporate;

(f) "issue " means an offer of sale or purchase of securities by any body corporate or by any other person or group of persons on its or his or their behalf, as the case may be, to the public, or, the holders of securities of such body corporate or person or group of persons;

(g) "regulations " means the Securities and Exchange Board of India (Debenture Trustees) Regulations 1993;

(h) "rules " means the Securities and Exchange Board of India (Debenture Trustees) Rules, 1993;

(i) "trust deed " means a deed executed by the body corporate in favour of the trustees named therein for the benefit of the debenture holders.

  1. Not to act as debenture trustee without obtaining certificate.-(1) No person shall act as debenture trustee unless he holds a certificate granted by the Board under the regulations:

Provided that such person who was engaged as debenture trustee prior to the coming into force of the Act, may continue to act as debenture trustee if he has made an application for such registration under the proviso to sub-section (1) of Section 12 of the Act till the disposal of such application.

  1. Conditions of grant or renewal of certificate.-The Board may grant or renew a certificate to an debenture trustee subject to the following conditions namely;-

(a) in case of any change in the status and constitution, the debenture trustee shall obtain prior permission of the Board to continue to act as debenture trustee;

(b) he pays the amount of fees of registration or renewal as the case may be in the manner provided in the regulations;

(c) he shall abide by the rules and regulations;

(d) he shall take adequate steps for redressal of grievances of the investors within one month of the date of the receipt of the complaints and he shall keep the Board informed about the number, nature and other particulars of the complaints received and the manner in which such complaints have been redressed.

  1. Period of validity of the certificate.-The certificate or its renewal, as the case may be, shall be valid for a period of three years from the date of its issue to the debenture trustee.