Latest News | IDBI Trusteeship Faces Rs 1-lakh Fine for Non-compliance of Debenture Trustee Norms

New Delhi, Aug 22 (PTI) 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.

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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.

"I find that there has been no effort or initiative taken from noticee's side for conducting inspection of accounts or records of FHHPL, which in my view especially should have been deemed necessary in the backdrop of default by FHHPL," Sebi's Adjudicating Officer Soma Majumder said.

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Accordingly, by failing to conduct inspection of the books of accounts, records, registers of FHHPL, the noticee has violated DT (Debenture Trustees) Regulations.

She also noted that the noticee had not taken any reasonable and necessary steps to fulfil its obligations, and hence can be made liable for the neglect and failure of FHHPL.

"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.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)