Securities And Exchange Board Of India (Debenture Trustees) (Amendment) Regulations, 2003.

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.... on the date of their publication in the Official Gazette. 2. In the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993(hereinafter referred to as 'the said Regulations'): - (i) in regulation 2 of the said Regulations, after clause (e) the following shall be inserted, namely - "(ee) "networth" means aggregate of value of the paid up equity capital and free reserves (excluding reserves created out of revaluation) reduced by the aggregate value of accumulated losses and deferred expenditure not written off (including miscellaneous expenses not written off) as per the latest audited balance sheet." (ii) after regulation 2 of the said Regulations, the following shall be inserted, namely - "Power of the Bo....

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....g to lend money to the body corporate. Provided that this requirement shall not be applicable in respect of debentures issued prior to the commencement of the Companies (Amendment) Act, 2000, where- (i) recovery proceedings in respect of the assets charged against security has been initiated, or (ii) the body corporate has been referred to Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985, , prior to commencement of the Securities and Exchange Board of India (Debenture Trustees) (Amendment) Regulations, 2003." (vi) in Regulation 15 of the said Regulations, (a) in sub-regulation (1), (i) clause (b) shall be omitted. (ii) in clause (g), for the word "ensure" the wor....

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.... non-compliance, of the requirements specified in the listing agreement with respect to debenture issues and debenture holders, by the body corporate to the Board." (viii) for the Schedule IV of the said Regulations the following shall be substituted , namely- "SCHEDULE IV Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993 [Regulation 14] CONTENTS OF TRUST DEED Every debenture trustee shall ensure that the trust deed executed between a body corporate and debenture trustee shall amongst other things provide for the following matters namely: - 1. Preamble This section shall inter-alia state the rights of the debenture holders and the manner in which these rights are vested in the trustee. 2. Description of ....

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....debenture trustee or any person or persons authorised by it; 4. Events of defaults This section shall clearly define the event of default which if occurs shall invite the actions by debenture trustee. This section shall also contain the steps which shall be taken by debenture trustee in the event of defaults. 5. Rights of debenture trustees This section shall inter-alia provide that : i. Debenture Trustee is entitled to inspect the registers of the company and to take copies and extracts thereof; ii. Debenture Trustee has a right to appoint a nominee director. 6. Obligations of body corporates This section shall inter-alia state the following with respect to company's duties : 1. to maintain Register of debenture holders with addre....

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....ition of shares and Takeovers) Regulations 1997. 14. to submit any such information, as required by the debenture trustee. 15. fee or commission of debenture trustees. 16. obligation to inform debenture trustee about any change in nature and conduct of business by the body corporate before such change. 17. obligation of the body corporate to forward a quarterly report to debenture trustees containing the following particulars: (i) updated list of the names and addresses of the debenture holders; (ii) details of interest due but unpaid and reasons thereof; (iii) the number and nature of grievances received from debenture holders and resolved by the body corporate; (iv) a statement that the assets of the body corporate which are a....