Debenture trustee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2011 what is the role of debenture trustee and why his role is necessary for issuance of debenture? why debenture trustee is the required to be appoint for issuance?

CS Bijoy

CS Bijoy (Expert)
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10 October 2011 Because the debenture holders are not able to have watch on the utilization of their money by the company so debenture trustees are appointed to protect the interest of the debenture holder and to look to the activities of the company that the money are being used only for the purpose it is taken.