Unit ko samjho · NISM Series III-A
SEBI (Debenture Trustees) Regulations, 1993
4 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
- Whose interests does a debenture trustee primarily protect in the relevant debenture issue?
- An issuer’s debenture terms require specified security and regular interest payments. What must the trustee monitor?
- A debenture payment default occurs and the issuer asks the trustee to ignore it. What should guide the trustee’s response?
- A hypothetical trust deed requires security worth 1.25 times ₹80 crore outstanding principal. Eligible security is ₹92 crore. What additional security is needed?
Zaroori ideas
Practice bank se · 1
Whose interests does a debenture trustee primarily protect in the relevant debenture issue?
The trustee acts to protect debenture holders in accordance with the issue terms, trust deed and applicable duties. Remember: The trustee’s beneficiary focus is the debenture holders.
Hint Common mistake: Assuming the issuer’s payment of trustee fees makes the issuer the sole protected party. Think about the beneficiaries of the debenture trust arrangement.
III-A-136Practice bank se · 2
An issuer’s debenture terms require specified security and regular interest payments. What must the trustee monitor?
The trustee should monitor the relevant security and payment obligations rather than relying on unrelated market signals. Remember: Trustee monitoring follows debt terms, security and servicing obligations.
Hint Common mistake: Using a strong stock price as a substitute for checking debt compliance. Focus on the obligations supporting the debt holders’ contractual protection.
III-A-137Practice bank se · 3
A debenture payment default occurs and the issuer asks the trustee to ignore it. What should guide the trustee’s response?
The trustee must follow its legal and trust-deed duties to holders rather than simply accept the issuer’s request. Remember: A trustee must respond to a default through the prescribed protective process.
Hint Common mistake: Letting the issuer decide whether its own default deserves action. Identify whose rights the trustee is meant to protect during a default.
III-A-138Practice bank se · 4
A hypothetical trust deed requires security worth 1.25 times ₹80 crore outstanding principal. Eligible security is ₹92 crore. What additional security is needed?
Additional security of ₹8 crore is required under the assumed covenant. Required security = 1.25 × ₹80 crore = ₹100 crore. Shortfall = ₹100 crore − ₹92 crore = ₹8 crore. The ratio and principal-only basis are hypothetical contract terms, not a general regulatory formula. Remember: Compare eligible security with the contractual cover requirement, not merely principal.
Hint Common mistake: Assuming security above principal necessarily satisfies every coverage covenant. First calculate the required security value under the stated contract.
III-A-139