« 18. 1. The Company may not issue covered bonds: Unless it meets the following conditions: “(4) The issuer shall appoint one or more bond agents in accordance with the provisions of Section 117B of the Companies Act, 1956 (1 of 1956) and the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993.” There is a contentious issue regarding the appointment of a bond agent in which covered bonds are issued on a private basis. Some experts believe that the provisions of Article 71(3) of the Act, combined with Rule 18(1)(c) of the Bond Rules, must be complied with in the case of the issuance of covered bonds, whether the bonds are issued in a “private placement” or with fewer than 500 members.