Sa-Dhan Legal Resource Note # 31
Procedure For Keeping Register Of Debenture Holders And Index Of Debenture Holders
Relevant Section: 152, 152A, and 153
VIII) However, where the debentures are held by a
depository on behalf of the beneficial owners thereof,
this prohibition does not apply.
1. Preliminary
IX)
Act: The Companies Act, 1956
I) The procedure for keeping register of
debenture holders and index of debenture
holders should not contravene the provisions
of Section, 152Section 152A, Section 153 of
The Companies Act, 1956 and Section
11,Section 9(2) of the Depositories Act, 1996
and Rule 21A the Companies (Central
Government's) General Rules & Forms, 1956.
2. Application
I)
II)
Every company, which has issued any
debentures, must keep a Register of
Debenture holders and enter therein the
prescribed particulars with respect to its
debenture holders.
The particulars must be entered in the
Register of Debenture holders as soon as
practicable after approval of transfer of any
debenture.
III)
Every company having more than 50
debenture holders must keep an index of the
names of its debenture holders. No separate
index need be kept if the Register of
Debenture holders itself has an index.
IV)
Where a separate index is kept, every
alteration made in the Register of Debenture
holders must be made in the index within 14
days of the making of an alteration.
V)
The index must be kept at the same place as
the Register of Debenture holders.
The Register of Debenture holders must be kept at the
registered office of the company. It may, however, be
kept at any other place within the city, town or village
in which the registered office of the company is
situated.
3. Filing And Fees
Fee for inspection
I) A member or debenture holder of the company can
inspect the Register of Members or other documents
without payment of any fee.
II) Any other person can inspect the Register of Members
or other documents on payment of a fee of Rs. 50 for
each inspection.
4. Follow Up
5. Miscellaneous
I) The Register of Debenture holders shall be prima facie
evidence of any matters directed or authorised to be
inserted therein by the Companies Act. [Section 164].
VI)
Where debentures are kept in dematerialised
form, the depository must keep a Register
and Index of Beneficial Owners of the
debentures.
VII) A company is prohibited from entering on
the Register of Debenture holders any trust,
express or implied, in respect of debentures
held by one person on behalf of another.
This legal resource note has been compiled specially for Sa-Dhan by Ramesh S. Arunachalam, using available legal resources in India.
First published in August 2006. © Sa-Dhan. Website: www.sa-dhan.org