A debenture trustee is a SEBI-registered entity, usually a bank's trustee company, appointed to protect the interests of NCD holders. It holds the security, monitors the issuer and acts for holders if the issuer defaults.
The trustee checks that the security cover is maintained, that interest and principal are paid on time, and that the issuer follows the terms of the debenture trust deed. If there is a default, it calls a meeting of holders and takes the steps they approve, such as enforcing the security.
The trustee's name and contact details are in the offer document. Holders can write to it with concerns.
Related
Related terms: Secured NCD · Security cover (asset cover) · Bond default
Before investing, look up the issuer: all its outstanding bonds, rating history and disclosure documents.
This page is for information only. It is not investment advice, a credit rating or a recommendation to buy, sell or hold any security. Facts are taken from the issuer's own documents and the sources linked on this page; check them with the source before investing.
