Debenture trustees may undertake fee-based financial services on an arms-length basis through separate business units. Regulation 9C permits a debenture trustee to undertake activities under other specified financial sector regulators or fee-based, non-fund financial services outside regulator purview, provided such activities are conducted on an arm's-length basis through separate business units and subject to Board-specified conditions. RBI-regulated trustees must perform trustee functions via a separate business unit. Existing registered trustees must transfer activities to separate units within six months of the amendment's notification or within any Board-granted extension. The trustee's specified net worth must be ring-fenced from adverse impacts of these activities.
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 trustees may undertake fee-based financial services on an arms-length basis through separate business units.
Regulation 9C permits a debenture trustee to undertake activities under other specified financial sector regulators or fee-based, non-fund financial services outside regulator purview, provided such activities are conducted on an arm's-length basis through separate business units and subject to Board-specified conditions. RBI-regulated trustees must perform trustee functions via a separate business unit. Existing registered trustees must transfer activities to separate units within six months of the amendment's notification or within any Board-granted extension. The trustee's specified net worth must be ring-fenced from adverse impacts of these activities.
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