Truestees of debentures trust

This query is : Open

Venkatesh (Querist)
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10 April 2013
Dear experts

Can Directors be the trustees of the trust created for issue of debentures??

Kindly help, it is an urgent requirement

Thank you
Venkatesh Duvvuri
Chartered Accountant

Ajay Mishra

Ajay Mishra (Expert)
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10 April 2013 Hi
As per Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993 Eligibility for being debenture trustee.
Regulation 7: No person shall be entitled to act as a debenture trustee unless he is either—
(a) a scheduled bank carrying on commercial activity; or
(b) a public financial institution within the meaning of section 4A of the Companies Act, 1956; or
(c) an insurance company; or
(d) body corporate.

As per above, an Individual can not become a trustee.

Venkatesh

Venkatesh (Querist)
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15 April 2013 Thank you sir,

But sir ours is private company, in that case also individual cannot be trustees?

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