Bright Ltd. wants to go for public issue of secured debentures for which the company issues prospectus. In light of the provisions of the Companies Act, 2013: (a) State the restrictions which are applicable in this regar

According to section 71(3) and Rule 18(1) of the Companies (Share Capital & Debentures) Rules, 2014, the company shall not issue secured debentures, unless it complies with the following restrictions/conditions: viz. An issue of such debentures may be made, provided the date of its redemption shall not exceed 10 years from the date of issue. However, a company engaged in the setting up of infrastructure projects, may issue such debentures for a period exceeding 10 years but not exceeding 30 years; Such an issue shall be secured by the creation of a charge, on the properties or assets of the company, having a value which is sufficient for the due repayment of the amount of debentures and interest thereon; The company shall appoint a debenture trustee before the issue of the Prospectus or letter of offer for subscription of its debentures and not later than sixty days after the allotment of the debentures, execute a debenture trust deed; and The security for the debentures by way of a charge or mortgage shall be created in favour of the debenture trustee.