Pooled investment vehicle debt issuance allowed; lenders may enforce security against trust assets while trustees remain not personally liable. A pooled investment vehicle registered with SEBI may borrow and issue debt securities as prescribed by SEBI; it may grant security interests under its trust deed and facility documents. Upon default, the lender may recover amounts and enforce security against trust assets by proceeding against the trustee acting for the vehicle, with the trustee not personally liable and personal assets protected; remaining trust assets after recovery are remitted proportionately to unit holders.
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.
Pooled investment vehicle debt issuance allowed; lenders may enforce security against trust assets while trustees remain not personally liable.
A pooled investment vehicle registered with SEBI may borrow and issue debt securities as prescribed by SEBI; it may grant security interests under its trust deed and facility documents. Upon default, the lender may recover amounts and enforce security against trust assets by proceeding against the trustee acting for the vehicle, with the trustee not personally liable and personal assets protected; remaining trust assets after recovery are remitted proportionately to unit holders.
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