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Director Message- Punjab National Bank,PNB Investment Services
SEBI DT Half-Yearly Report
for Period Ended 30th Sept. 2012

TRUSTEESHIP SERVICES

Debenture Trustee and Security Trustee

At PNBISL, we deliver expert Trusteeship Services to our clients through a team of dedicated, trained experienced professional who continually strive to cater to changing market needs, ensuring that we deliver the best. The knowledge and expertise of the professionals’ along with their ethical integrity approach inspires confidence of our clients expediting the process of execution of assignments. The impetus is on developing excellent rapport with corporates or investors by providing quality services with shortest possible turnaround time.

PNBISL is a SEBI registered Debenture Trustee Company provide services with regard to Trusteeship business as:
  • Debenture/ Bond Trustee
  • Security Trustee
  • Share Trustee

Debenture Trustee

PNBISL provides Trusteeship Services for debenture/bond issuances, and other activities set up in trust format and thereby representing the interest of the debenture holders/bond holders. PNBISL ensures the protection of interest of holders of debentures (including the creation of securities within the stipulated time) and redressal of the grievances of holders of debentures effectively and may take such other steps as we may be required for the same. We advise the Debenture / Bond Issuers (Public/Private company, Govt / Semi Government bodies) on obtention of rating, appointment of arrangers, guidance on structured payment mechanism, clarification on legal / statutory matters in issue of debentures / bonds, documentation process, preparation of all kinds of related documents, creation of charge, registration and compliance of legal and statutory requirements in this aspect.

Security Trustee

At PNBISL, we offer Security Trustee services that ensure the creation of security and its management over time. At PNBISL, we create and hold security on behalf of various lenders. We also facilitate dealings between borrowers and lenders, functioning as advisors and efficient coordinators. As Security Trustee, PNBISL fulfils a range of activities related to corporate, custodial and back office functions. We accept Security Trusteeship assignment for the loans / advances granted by any Bank / Financial Institution to any corporate body as under Security Trusteeship.

Share Trustee

The banks are barred under Sec 19(2) of Banking Regulation Act 1949 (BR Act)to hold shares of any company beyond 30% of their own capital of the company. In the present day scenario, the banks and FIs invariably seek pledge of the promoter’s shareholding in the company. In fact, in restructured accounts, the shares pledged all 51 % of the total paid up capital of the company or 100% of the promoter’s holding in the same, whichever is less. Thus, in effect more than 30% shares are sought to be pledged. However, in light of section 31 of BR Act, it is not permitted, there is always a delay or non- compliance of the same.

PNBISL provides a readymade solution to the issue by providing Share Pledge Trusteeship services at nominal fee. The whole exercise of share pledge can be effected and security created in a matter of 1-2 weeks. The Systems and procedures for the Share Pledge Trusteeship have been perfected and customized to meet the requirements of customers. A team of dedicated professionals has been developed to undertake these assignments. We provide all services related to corporate, custodial and back office functions, including:

  • Drafting/Vetting necessary documentation.
  • Creation of Share Pledge and necessary compliance of reporting to regulatory bodies.
  • Providing clearances on behalf of the Lenders for future borrowings.
  • Acting on Lenders written directions.
  • Enforcing security in the event of default.