Loan from NBFC, issued Debentures and executed Debenture Trust Deed.( DTD)

    Posted By : CS Shiriti / Published on : 07-Apr-2020 03:57 PM / View : 36 / Comment : 0
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    X Co. has taken Loan from NBFC, issued Debentures and executed Debenture Trust Deed.( DTD).

    Y Co has given its security to secure Loan and thereby secure Debentures and party to DTD Reading of Rule 3 of Companies (Registration of Charges) Rules, 2014 For registration of charge as provided in sub-section (1) of section 77, section 78 and section 79, the particulars of the charge together with a copy of the instrument, if any, creating or modifying the charge in Form No.CHG-1 (for other than Debentures) or Form No.CHG-9 (for debentures including rectification),

    Query :

    Whether Y Co shall be required to file CHG-1 or CHG-9 ?

    1. Now in this case though Y. Co is not issuing Debentures, but it shall create a charge to secure Debentures issued by X Co.

    2. Section 77 and Rule 3 , does not speak about Issuer of Deb., it specifies Charge creating Instrument

    3. Eform filing is Instrument specific and not issuer specific Hence as per section and Rules Y. Co shall file CHG-9, instead of CHG-1

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    Read more on : debenture trust deed executed debentures nbfc issued loan



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