Bond Indenture

A bond indenture (also called a bond deed or trust deed) is the comprehensive legal contract between a bond issuer and the bondholders, setting out all the terms and conditions governing the bond. It specifies the face value, coupon rate and payment schedule, maturity date, security or collateral pledged (if any), covenants (conditions the issuer must adhere to), and the rights and remedies available to bondholders in the event of default. In India, corporate bond indentures are maintained by a SEBI-registered debenture trustee who acts on behalf of all bondholders to monitor covenant compliance and enforce investor rights if the issuer breaches the agreed terms.