Maintenance of Books of Records

The Records relating to the trusteeship functions must be kept and maintained for at least five financial years preceding the current financial year.

Appoint of Compliance officer

A compliance officer should be appointed by the trustee to monitor the compliance of the SEBI Act/Rules & Regulations etc., and for redressal of investors’ grievances. Non-compliance should be immediately and independently reported to the SEBI by the compliance.

Information to SEBI

As and when required by SEBI the debenture trustee is bound to submit the following:-

Delayed payment/Non-payment of interest to debenture holder.

Dispatch/transfer details of debenture certificate.

Any other detail relevant to the trustee.

Inspection by SEBI

SEBI is authorized to inspect books of account and other records of debenture trustees.

The purpose of inspection is

To ensure proper maintenance and compliance with companies Act.

To ensure that they are maintained in the manner prescribed by SEBI.

To grant continuance of Registration

Investigation of compliance against the trustees’ activities.

In the interest of securities/Business/investors. As an alternative the SEBI may appoint a qualified auditor for investigation into the accounts/affairs of the trustee.

Based on the inspection report SEBI can direct the trustee to take measures in the interest of the security market and for due compliance with the provisions of SEBI Act.