A company may issue secured debentures if it fulfills certain conditions. State the conditions to be fulfilled.

Section 71(3) states that a company may issue secured debentures subject to terms and conditions as prescribed in Rule 18(1) of the Companies (Share Capital and Debentures) Rules, 2014. The company shall not issue secured debentures, unless it complies with the following conditions :- An issue of secured debentures may be made, provided the date of redemption shall not exceed ten years from the date of issue. However, a company engaged in the setting up of infrastructure projects or infrastructure finance companies, or Infrastructure Debt fund NBFC may issue secured debentures for a period exceeding ten years and but not exceeding thirty years; such an issue of debentures 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 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 to protect the interest of the debenture holders as per sec 71 (5) and in compliance with conditions as in Rule 18(2); and the security for the debentures by way of a charge or mortgage shall be created in favour of the debenture trustee on- any specific movable property of the company (not being in the nature of pledge); or any specific immovable property wherever situate, or any interest therein.