Security Trusteeship is a contractual arrangement amongst Borrower, Lenders and Security Trustee materialized by executing a document called Security Trustee Agreement (STA) wherein the Borrower, settles a trust with the Security Trustee. Trust will hold Secured Properties (any kind of movables, immovables, pledge of shares, rights, etc.) and the Security Trustee will act as a Trustee to such Trust.

Nature of work

Advantages to Lenders:

  • Vetting of documents before execution.
  • Vetting of title search reports as a double check.
  • Obtaining all corporate resolutions before execution.
  • Ensure obtaining of permissions from Statutory / Regulatory / Existing Lenders / Lessor’s prior to creation of security.
  • Compliance with registration of charges as specified under Companies Act,2013.
  • Compliance with CERSAI rules.
  • Safe custody of the documents in a professional environment, easily retrievable whenever required.
  • Avoiding frequent transfer of title deeds from one Lender to another in case of down-selling.
  • Hold pledge / NDU in our favour as per SAST guidelines for individual /several Lenders; thereby shares are encumbered only to one party. Act as per Lender/s instructions for release of security. Banks are not allowed to hold more than 30% equity stake in any company. However, we can hold 30% equity stake on their behalf. Appropriate disclosures in respect of listed shares are done in stock exchanges to effect the correct pledge position.
  • Verify the letters from Lenders prior to modification/ satisfaction of loan.
  • Execute re-conveyance deeds on satisfaction.
  • Furnish confirmation letter on request from Lenders for Audit purposes.
  • Undertake enforcement on the directions of Lenders.
  • Mitigation of operational risk and release of resources for core business activities

Advantages to Borrowers:

  • Single point of contact in consortium funding or multiple banking structures.
  • Single charge created in favour of Trustee for the benefit of various Lenders. This helps in better stamp duty cost management.
  • Facilitates Borrower at the time of modification/s and satisfaction of Charge.

Our Expertise

  • A well-equipped team of experts comprising of Chartered Accountants, Lawyers, Company Secretaries and others possessing rich experience in Banking and Debt Markets, making us the best in the business.
  • Timely drafting, vetting and execution of documents.
  • Safe custody of title deeds.
  • Expeditious implementation of modifications, enforcement directions.

Services Offered

  • Structuring transactions as per sanction terms of Lender.
  • Vetting of transaction documents.
  • Conceptualizing, customizing and structuring of the security documents to consolidate documentation ensuring compliance with all the terms and conditions of the loan agreements of all lenders.
  • Liaison with lenders and the Legal Counsel to expediate documentation.
  • Create / hold security in favour of the Security Trustee on behalf of the lenders.
  • Perfection of Security Interest created under
    – Companies Act, 2013 – Registration of Charges
    – CERSAI rules.
  • Safe custody of original title / transaction documents.
  • Monitor the Asset Coverage.
  • Maintain Records and submit various reports to the Lenders.
  • Re-convey mortgaged properties on repayment.
  • Monitor insurance policies.
  • Security enforcement in case of default.
    – Issue of Notice to Borrower
    – Completion of Curation Period
    – Obtaining requisite Approvals
    – Completion of Court Procedure
    – Obtaining Decree