One of the common transactions we come across in today’s market is Loan against Shares. In this kind of a product a lender (typically a Bank or an NBFC) lends against adequate collateral. The collateral is normally the pledge of listed shares (in most cases). In some cases one may have to deal with be partial collateral of liquid listed shares along with unlisted shares as collateral. The lenders decide a mechanism to monitor these on a daily basis. The Trustee here plays the role of monitoring these shares for the lenders so that adequate margin is maintained against the market value of shares offered under the pledge. The margin calculation is as advised by the lender(s) which adequacy depends upon the volatility of pledged shares and/or market conditions.
- Pledge of shares are held by us for the benefit of the lender for the entire tenor of the transaction.
- Valuation of shares is continuously conducted by us for the listed shares pledged with us on a daily, weekly & monthly basis. Daily reports are generated & sent to the relevant lenders along with the requirement of the margins
- Event of Default trigger is issued in cases & we as a Trustee invoke the pledge on the instructions received from the lender(s)
- In cases where defaults are triggered, shares may be sold by us on behalf of the lender(s) through various broking entities that we may choose to appoint.
- There have been cases of shares pledged through the consortium lending method for which we play a crucial role of monitoring on behalf of the lender(s). Here too like any other collateral, we behave like our role in case of a Security Trustee on behalf of multiple lenders. It’s convenient for the borrower company as well as the entire group of lenders
- Benefits to Borrower & Lender
Benefits to Borrower & Lender
- Hassle free pledge of securities in physical & demat form.
- Pledge done in favour of an independent non-partisan third party.
- Daily / Periodic valuation of listed securities.
- Expeditious operations enable timely disbursement of sanctioned facilities.
- Monitoring of:
- Asset Cover maintained
- Trigger Events
- Compliance with terms of sanction
- Diligent retention & release of securities pledged.
- Proactive post-default action for invocation of pledge in adherence with Lender instructions & extant laws, regulations & guidelines.
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Testimonials
REC Limited
Dear Beacon Trusteeship Ltd Team,
We are writing to express our appreciation for outstanding work performed by Beacon Trusteeship Limited bond issuance process of REC limited.
Your tireless commitment towards utmost efficiency in work & compliance with all relevant regulatory requirements have been instrumental in the success of the bond issuance process of REC ltd. Your contribution & dedication have not gone unnoticed & we would like to acknowledge the impeccable efforts of the Beacon Trusteeship Limited team through this letter. Looking forward to continuous association in future endeavors.
Date: 26/12/2023
Sumit Mehra
Cheif Manager (Finance)
Power Finance Corporation Ltd
Dear Team Beacon
We are writing to express our appreciation for service provided by Beacon trusteeship ltd throughout the recent bond issuances of Power finance Corporation limited(“PFC”). The bond issues were successfully completed & the entire exercise was smooth & seamless. We appreciate the effort put in by the entire Beacon Team. Kindly convey our acknowledgment to all involved for their concerted efforts. Looking forward to continuous support and more opportunities to work together.
Date: 6/12/2023
Thanking You
Vishna Ram Jakhar
Chief Manager (Finance)
NTPC Limited
Dear Team Beacon,
We are writing to express our appreciation for the services provided by Beacon Trusteeship Limited throughout the recent bond issuances of NTPC Limited. The bond issuances were successfully completed,and the entire exercise was smooth and seamless. We appreciate the efforts put in by the entire Beacon team.
Kindly convey our acknowledgement to all involved for their concerted efforts. Looking forward to the continuous support and more opportunities to work together.
Date: 20/09/2023
Thanking You
Anita Srivastava
Additional General Manager (Finance)
U.P Power Corporation Ltd
Dear Beacon Trusteeship Ltd Team,
We are writing to express our heartfelt appreciation for expectational services provided by Beacon Trusteeship Ltd through the bond issuance process with U.P Power Corporation Ltd. Your team’s dedication and expertise played a pivotal role in the success of issuance. Your meticulous attention to detail, unwavering commitment to regulatory compliance, & prompt responsiveness to where nothing sort of exemplary.
It is clear Beacon Trusteeship plays emphasis on professionalism & excellence. Your team’s expectational performance not only meet but exceeded our expectations making this partnership a true success.
Date: 14/12/2023
Thanking You
Neeraj Chaurasia
Dy General Manager (Finance)
Andhra Pradesh State Beverages Corporation Ltd
Dear Beacon Trusteeship Ltd Team,
We are writing to express our heartfelt appreciation for expectational services provided by Beacon Trusteeship Ltd. throughout the bond issuance process with Andhra Pradesh state Beverage corporation Limited.
Your Team’s dedication & expertise played a pivotal role in the success of issuance. Your meticulous attention to detail, Unwavering commitment to regulatory compliance & prompt responsiveness were nothing short of exemplary. It is clear Beacon Trusteeship Ltd places a high emphasis on professionalism & excellence.
Your team's performance meets our expectations, making the partnership successful.
Date: 08/12/2023
Thanking You
Beacon in Media
Infrastructure-wise, Gujarat is exceptional, boasting 42 ports, including the major port of Kandla, & 17 operational airports. This robust infrastructure is further underlined by its top ranking in logistics & export preparedness. The state's economy is diverse, with a strong presence in sectors like petrochemicals, pharmaceuticals, automobiles, gems and jewelry, and now a growing focus on computer software and hardware. Gujarat accounts for a significant portion of India’s pharmaceutical manufacturing and exports, with an extensive base of over 3500 licensed private players. Additionally, the region has emerged as a key hub for the automobile industry, attracting major players, and contributing significantly to India's transport equipment output
Date: 27/1/2024
Pratapsingh Nathani
Chairman & Managing Director
BeaconTxn is designed to secure retail transactions, providing peace of mind to both parties involved in a transaction, Our platform leverages our strong background in high-volume escrow services to make retail transactions safer and completely hassle-free
Date: 26/1/2024
Pratapsingh Nathani
Chairman & Managing Director
Whilst in the Securitization vertical, Beacon processes $3 billion worth of Securitized pools on a month-on-month basis, which includes Direct Assignment, Pass-Through Certificates (PTC) and Securitised Debt Instruments (SDI), the ProSec platform has surpassed the $3 billion volume mark.
Date: 22/12/2023
Pratapsingh Nathani
Chairman & Managing Director
As a real estate investor, diversifying your portfolio often involves considering various asset classes, and Non-Convertible Debentures (NCDs) can be an enticing proposition. When venturing into Real Estate Investments one must consider to evaluate the option of investing into the Real Estate Sector through the NCD route and furthermore , you should preferably opt for listed debentures over unlisted ones. When you invest into listed real estate debt, not only does a Debenture Trustee act as your financial guardian in this space, but listed debentures also bring an added layer of protection through SEBI (Securities and Exchange Board of India) guidelines.
Date: 5/9/2023
Pratapsingh Nathani
Chairman & Managing Director
The RBI's steadfast monetary policy, keeping the repo rate at 6.5%, indicates a strategic balancing act between curbing inflation and bolstering economic growth. With the inflation target yet to meet the 4% benchmark, the RBI, under Governor Shaktikanta Das, leans towards a cautious yet growth-oriented policy. The RBI's growth forecast for India at an optimistic 7% points to a confidence in domestic economic resilience, outpacing international projections. Alongside maintaining economic stability, the RBI has made strategic enhancements to the Unified Payments Interface (UPI), raising the transaction cap to Rs 5 lakhs for payments to hospitals and educational institutions, and up to Rs 1 lakh for recurring transactions such as credit card bills, mutual fund subscriptions, and insurance premiums. These increases are set to bolster high-value payment convenience through UPI, with an additional authentication layer for transactions exceeding Rs 1 lakh, thereby supporting larger ecosystem sectors and advancing digital payment adoption.
Date: 12/12/2023
Pratapsingh Nathani
Chairman & Managing Director
