For the reasons outlined above, Rule 18, paragraph 1, point (c), of the bond settlement cannot be read in isolation from the other provisions, or risk nullifying the entire notion of appointing a bond agent when issuing unlisted secured bonds on a private basis and unnecessarily penalizing the issuing companies for unnecessary costs associated with ordering bonds. The above requirements must be met by the issuing company, although the appointment of an agent in charge of the obligation is not mandatory within the meaning of the law. Two parties, the company and the trustees for the bonds, are involved in a trust agreement on the obligations. The obligation is an instrument for cancelling the debt. A bond trustee is a person who is responsible for the fiduciary company for the guarantee of obligations for each business. This agent may be a bank, an insurance company or a business. The agent for the bonds serves as a link between the company and the bondholder. The bond agent will ensure that the company has complied with all investments made to protect the obligations. A bond trustee can only be a bank that participates in a business, an insurance company or another entity. There is a contentious issue regarding the appointment of an agent as a bond agent in which the secured bonds are issued on a private intermediation basis. Some experts believe that the provisions of Section 71, paragraph 3 of the Act, read by Rule 18, paragraph 1, point (c), of the Bond Regulation, must be respected when issuing secured bonds, whether the bonds are issued by “private placement” or by less than 500 members.

This means that, in the case of the issuance of bonds backed by a single bond holder, the mandate of agent of the obligation becomes mandatory: which seems to violate the spirit and intent of the legislature in this matter for the following reasons: “4) The issuer appoints one or more agents in bonds, in accordance with the provisions of paragraph 117B of the Corporations Act. , 1956 (1 of 1956) and Securities and Exchange Board of India (Debenture Trustees) Regulations , 1993.” The obligation to appoint an agent of the obligation is also defined in Section 71 (5) of the Corporations Act 2013 (“Law”). The corresponding excerpts from Section 71 (5) above are reproduced below for an easier reference: “3) Guaranteed bonds may be issued by a company under the prescribed conditions.” There may be cases where a regulator may appoint an agent for its respective policies or instructions. Some of these cases are mentioned in this section of understanding simplification. Indian law first introduced the concept of fiduciary of obligations into the 1993 SEBI (Debenture Trustees) regulations, which regulate, among other things, the admission criteria for REGISTRATION to SEBI, a code of conduct, and other rules for monitoring and verifying the work of agents as debt. Subsequently, the concept of agents and obligations was also introduced into the Corporations Act in 1956 by the Amendment Act, 2000, only for the public issuance of bonds.