Chapter 7: Correspondence with Debentures holders

What are the precautions to be taken by the Secretary while corresponding with debenture holders? (4M)

1) Politeness: Being the creditors, due respect should be given to the debenture holders the tone of laguage should be corteous and not rude.

2) Prompt Response: Secretary shoul promptly reply and rspond to debenture holders

3) Transparency: All information should be disclosed and accurately given. Eg- Credit rating, financial position, etc.

4) Concise: The letter should be concise i.e to the point.

What are the circumstances under which correspondence can be made with debenture holders?

1. Informing about allotment of debentures.

2. Informing of Payment of Interest through:

a) Interest Warrant

b) Electronic Payment

3. Conversion oof debentures into equity shares.

4. Redemption of debentures

Letter of Allotment of Debentures

Payment of Interest (Interest Warrant)

Payment of Interest (Electronic Payment of Interest)

Conversion of Debentures

Redemption of Debentures