A Debenture Trustee is defined as a trustee under a written trustee appointment agreement /deed for the purpose of securing any issue of debentures by a body corporate (the Issuer). Debenture trusteeship involves taking possession of the assets/property being offered as security for securing the debentures issued by the body corporate.
Debenture Trusteeship essentially covers acting as trustees for debt instruments issued by a body corporate. Such debt instruments broadly fall into two categories namely Debentures & Bonds
Debentures, which are issued by bodies corporate, may be secured/unsecured and Convertible, (optional/compulsory) whether fully or partly Non-convertible
Debenture trustee is required to monitor the creation/perfection of security and servicing of debentures. The debenture trustee is also required to undertake enforcement of security in the interest of the holders of the debentures upon their instructions and also carrying out such other acts as are necessary for the protection of the interests of the debenture holders, and, to do all things necessary in order to resolve the grievances of the debenture holders.