Document background
The Debenture Subscription Agreement is a crucial document used in Indian corporate finance transactions when a company seeks to raise funds through the issuance of debentures. This document becomes necessary when companies require substantial capital for expansion, refinancing, or general corporate purposes, and choose debt financing through debentures over other funding options. The agreement complies with Indian regulatory requirements, including the Companies Act 2013, SEBI regulations, and RBI guidelines, making it essential for both private and public debenture issuances. It serves as the primary contract governing the relationship between the issuer and debenture holders, detailing crucial aspects such as subscription terms, payment mechanics, security structure (if any), covenants, and default provisions. The document is particularly important in the Indian context given the growing significance of the corporate bond market and increased regulatory focus on debt securities.
