Unsecured subordinated debt permitted with investor consent, subject to enhanced disclosure and escrow-backed security procedures. Offer documents must identify assets subject to security and state charge ranking, disclose risks of second or subordinated charges, specify the required security/asset cover and its valuation basis and periodicity, obtain and submit relevant consents to the debenture trustee before opening the issue, and place issue proceeds in escrow until security documents are executed. The guidelines also permit issuance of unsecured/subordinated debt not constituting public deposits, provided subscription is limited to Qualified Institutional Buyers or investors who have given positive consent.
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.
Unsecured subordinated debt permitted with investor consent, subject to enhanced disclosure and escrow-backed security procedures.
Offer documents must identify assets subject to security and state charge ranking, disclose risks of second or subordinated charges, specify the required security/asset cover and its valuation basis and periodicity, obtain and submit relevant consents to the debenture trustee before opening the issue, and place issue proceeds in escrow until security documents are executed. The guidelines also permit issuance of unsecured/subordinated debt not constituting public deposits, provided subscription is limited to Qualified Institutional Buyers or investors who have given positive consent.
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