sebi requires issuer of debt securities to create ‘recovery expense fund’ for debenture trustees

sebi requires issuer of debt securities to create ‘recovery expense fund’ for debenture trustees




In order to enable the Debenture Trustee(s) to take prompt action for enforcement of security in case of ‘default’ in listed debt securities, the SEBI has required create of ‘Recovery Expense Fund’ (REF) by issuer of debt securities which shall be used in the manner as decided in the meeting of the holders of debt securities. SEBI has also prescribed the norms for manner of creation and operation of REF, Manner of utilisation of REF, and provision for refund of REF to the issuer.







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