Tag Archives: Debenture

Debenture w.e.f. 9th February 2018

The Companies (Amendment) Act, 2017 has amended the definition of Debenture with an interesting and confusing way. We will discuss it hereunder.

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Amendment to Share Capital and Debentures Rules

Ministry of Corporate Affairs recently introduced amendment to the Companies (Share Capital and Debentures) Amendment Rules 2015.

These Amendments shall come into force on publication on official gazette i.e.

Application of these Rules:

Rule 3 related to applicability of these rules have been substituted as under:

The provisions of these rules shall apply to –

(a) all unlisted public companies:

(b) all private companies: and

(c) listed companies so far as they do not contradict or conflict with any other regulation framed in this regard by the Securities and Exchange Board of India.

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In last post we discussed Debenture Trust. Now we will discuss format for debenture trust deed as given in Form SH -12.

The debenture trust deed shall, inter alia, contain the following:-

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In last post here, we discussed some provisions relating to Debentures. Now, we will study other provisions related to Debenture Trust under the Companies (Share Capital and Debentures) Rules 2014.

Debenture Trustee:

The company shall appoint debenture trustees, after complying with the following conditions, namely:-

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DEBENTURE (Companies Act 2013)

A bond from the Dutch East India Company, dati...

A bond from the Dutch East India Company, dating from 7 November 1623, for the amount of 2,400 florins. (Photo credit: Wikipedia)

Debenture is most important instrument to raise capital for a company. A company use debenture to raise debt capital. Popularly, debenture issued by public sector companies with government approval is called bonds.

Section 2 (30) of the Companies Act, 2013 define inclusively debenture as “debenture” includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not.

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