Comment on the following: (ii) Is appointment of Debenture Trustee compulsory ?

Yes, the appointment of a Debenture Trustee is compulsory in several situations: Companies Act, 2013 (Section 71(5)): A company cannot issue a prospectus or make an offer or invitation to the public or to its members exceeding 500 for the subscription of its debentures, unless it has appointed one or more debenture trustees before such issue or offer. SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021: These regulations mandate the issuer to appoint a debenture trustee in case of an issue of debt securities. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018: An issuer making an initial public offer of convertible debt instruments must appoint at least one debenture trustee in accordance with the Companies Act, 2013, and SEBI (Debenture Trustees) Regulations, 1993. Therefore, for most public issues of debentures or debt securities, the appointment of a debenture trustee is mandatory.