Idbi Trusteeship faces Rs 1 Lakh Fine for Non Compliance the Debenture Trustee Norms

IDBI Trusteeship Services Limited (ITSL) is a professionally managed company which provides a wide spectrum of trusteeship services in India. It is jointly promoted by IDBI Bank Limited, LIC of India and GIC of India. ITSL has completed two decades of service. As per PRIME DATABASE league tables for debenture trustees, ITSL has been consistently ranked as the Number 1 trustee company in India.

ITSL provides support services to organizations in raising funds through issuance of Debentures, Bonds, Masala Bonds Bank Loans etc. It also provides fiduciary , P2P Lending’s, Private Trusts, guaranteed CP employee welfare trusts, securitization trusts under PTC and DA routes etc.

ITSL provides services to private and government organizations, business owners/ families non-profit organizations, individuals & overseas corporate bodies as clients.

Capital markets regulator Sebi on Monday imposed a fine of Rs 1 lakh on IDBI Trusteeship Services for non-compliance of debenture trustee norms and directed the entity to pay the amount within 45 days. The order came after Sebi carried out an investigation in the matter of Fortis Health Care Holdings Pvt Ltd (FHHPL) based on a reference received from IDBI Trusteeship Service Ltd (ITSL) in the context of debt securities issued by FHHPL.

The regulator observed that ITSL– a Sebi-registered intermediary — failed to take any action towards the inspection of books of accounts of FHHPL but later cited non-cooperative behaviour of FHHPL as a reason for its failure.

“Noticee failed to fulfil its obligations in a prompt, ethical and professional manner, thereby violating code of conduct as specified in Debenture Trustee rules,” Sebi said in the order.

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