Trust deed execution penalty: additional interest accrues to debenture holders until the trust deed is executed and disclosed. Where an issuer fails to execute the trust deed within the prescribed period, the issuer must pay interest to the debenture holder of at least two percent per annum over and above the agreed coupon rate until the trust deed is executed; a clause imposing this obligation must form part of the Trust Deed and be disclosed in the Offer Document. Schedule I (paragraph 3, Part B) is amended to require disclosure that replacement of security carries interest to the debenture holder over and above the coupon rate as specified in the Trust Deed and Offer Document.
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.
Trust deed execution penalty: additional interest accrues to debenture holders until the trust deed is executed and disclosed.
Where an issuer fails to execute the trust deed within the prescribed period, the issuer must pay interest to the debenture holder of at least two percent per annum over and above the agreed coupon rate until the trust deed is executed; a clause imposing this obligation must form part of the Trust Deed and be disclosed in the Offer Document. Schedule I (paragraph 3, Part B) is amended to require disclosure that replacement of security carries interest to the debenture holder over and above the coupon rate as specified in the Trust Deed and Offer Document.
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