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        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.

        <h1>Capital adequacy requirement: debenture trustees must maintain prescribed net worth and avoid conflicts or lending to issuers.</h1> Amendments define networth as paid-up equity plus free reserves less accumulated losses and deferred expenditure; require trustees to employ a qualified lawyer and meet a capital adequacy requirement in the form of a minimum networth, maintain that networth continuously, report any shortfall to the Board and not take new assignments until restored. Trustees are barred from acting where they are associates of or have outstanding or proposed loans to the issuer; trustees may not relinquish assignments until a replacement is appointed and are granted inspection and reporting powers, with detailed mandatory trust-deed contents specified.

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