Debenture trustee independence: trustees barred from acting for associates to prevent conflicts of interest in debenture issues. Regulation 13A bars appointment of a debenture trustee when the trustee's relationship with the issuer creates a conflict of interest, including being an associate, holding issuer shares, occupying promoter/director/ key managerial or employee roles in the issuer or related entities, being entitled to issuer moneys (other than trustee remuneration), indebtedness to the issuer or related entities, guaranteeing secured debt, having prescribed pecuniary relationships, or being a relative of promoters or key personnel; government-guaranteed issues and limited transitional situations are carved out.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Debenture trustee independence: trustees barred from acting for associates to prevent conflicts of interest in debenture issues.
Regulation 13A bars appointment of a debenture trustee when the trustee's relationship with the issuer creates a conflict of interest, including being an associate, holding issuer shares, occupying promoter/director/ key managerial or employee roles in the issuer or related entities, being entitled to issuer moneys (other than trustee remuneration), indebtedness to the issuer or related entities, guaranteeing secured debt, having prescribed pecuniary relationships, or being a relative of promoters or key personnel; government-guaranteed issues and limited transitional situations are carved out.
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