Q.Write short notes on:

Both these mechanisms exist for the same reason — a debenture-holder has no vote to protect their own money with, so the law creates an external safeguard instead.

(a) Debenture Trust Deed and Debenture Trustee: Section 71(3) of the Companies Act, 2013 requires that, where debentures are to be secured, the company create a charge on its assets in favour of a Debenture Trustee, appointed before the issue opens through a formal Debenture Trust Deed executed between the company and the Trustee. The Debenture Trustee is typically a scheduled bank, a public financial institution, or an insurance company, and its role is to hold the charged security on trust for the entire body of debenture-holders and to protect their collective interests — since scattered, individual debenture-holders would otherwise have no practical way of monitoring the company's conduct or enforcing the security on their own. The Trust Deed itself records the details of the charge, the Trustee's powers, and the terms on which the Trustee will act on the debenture-holders' behalf, including on a default. …

Students sometimes confuse the Debenture Trustee (who protects debenture-holders under a secured issue) with a Registrar of Companies role; the two are unrelated. Another frequent gap is forgetting to state that DRR funds are legally rin …