- Security creation in favour of the Trustee for one or more lenders,
- Holding financing & security documents in safe custody thereby avoiding frequent transfers of documents from one lender to another,
- Hold the security, enforce the security and protect the interest of lender(s),
- Act upon instructions of lenders,
- Efficient and Quick release/ reconveyance of mortgaged properties on repayment,
- Enforce security, in case of default as per security documents,
- Ceding of various types of charges subject to compliance of various pre-conditions, which would facilitate timely creation of security.
- To create security in favour of lenders,
- Hold security documents on behalf of lenders,
- Act upon instructions of lenders.
Escrow Trustee / Agent
- Escrow Trustee / Agent is appointed in case of critical & typical transactions for limited purpose,
- Escrow Trustee / Agent is appointed as independent Agency to complete the transactions and to assist to comply with all applicable statutory/regulatory requirements pertaining to transactions contemplated by the respective agreements & the perfection of security for the benefit of lenders/clients.
Share Pledge Trustee
- Obtain/Create pledge on behalf of lenders (including overseas lenders),
- Monitor compliances, if any, laid down in the Share Pledge Agreement,
- Ensure additional pledge/partial release of shares in case of shortfall/excess security cover, as stipulated in security documents.
- Facility Agent is appointed in cases of large syndication/multiple banking arrangements,
- Co-ordination & facilitation of flow of credit.
Trustees for ESOP
- Under ESOP Scheme, an Employer grants ESOPS to its employees/Directors as a benefit /Right to purchase/subscribe securities at a future date at predetermined price decided by remuneration /compensation committee,
- Employees are enabled to participate/share in the growth of the Company and therefore ESOP is used as a measure of retention policy,
- Remuneration/Compensation Committee allots options to its Employees/Directors as per ESOP/SEBI guidelines.
Roles of ESOP Trustee
- To open / operate necessary accounts ( DP Accounts / Bank Accounts etc. ),
- To monitor/supervise the trust including Audit of all trust accounts,
- To distribute dividend as per instructions of compensation/remuneration committee,
- To send periodical information at regular intervals to option holders, compensation / remuneration committee and Board of Trustees.
Alternate Investment Fund
- Assisting in filing application with SEBI for approval and help/co-ordinate for getting registration,
- Obtaining PAN/TAN and other registrations etc,
- Monitoring Investment Manager,
- Ensuring compliances of SEBI guidelines.
- Appointing Internal Auditor for Trust Account,
- Attending Queries/investor’s grievances,
- Intermediary for exchange of information between Investment Manager and Investors,
- Convening investor’s meet from time to time,
- Income/dividend distribution so also distribution of proceeds of Divestment/redemption etc.
- Accepting the documents of title /other important documents and agreeing to release and deliver in accordance with written instructions.
- Keeping documents of various nature viz. security documents/title deeds, etc. in safe custody.
- Documents are released or transfer is effected on completion /accomplishment of purpose.