SEBI alleges IDBI Trusteeship Services misled regulator over default notices

This order details SEBI's adjudication proceedings against IDBI Trusteeship Services Limited (ITSL) for alleged failures to comply with regulatory requirements regarding the actions debenture trustees must take when issuers default on payments.

IDBI Trusteeship Services Limited (ITSL)

• SEBI alleged ITSL failed to issue notices to debenture holders within 3 days of default events for issuers including India Home Loans Limited, Jharkhand Road Projects Implementation Company Ltd, ATS Infrabuild Pvt. Ltd., Century Sheltors Developers Pvt. Ltd., and Future Supply Chain Solutions Ltd.
• SEBI alleged ITSL failed to maintain proof of delivery for notices sent to debenture holders in several cases.
• SEBI alleged ITSL failed to include mandatory clauses (such as negative consent for enforcement and positive consent for Inter Creditor Agreements) in notices sent to debenture holders.
• SEBI alleged ITSL failed to update default history on the India BondInfo database within 7 days of knowledge of default for ATS Infrabuild Pvt. Ltd. and Future Supply Chain Solutions Ltd.
• SEBI alleged ITSL submitted false information during inspection by claiming compliance with database update timelines when updates were not made within prescribed periods.
• SEBI alleged ITSL failed to appoint nominee directors on the boards of the five mentioned issuer companies following specific default events.
• SEBI alleged ITSL failed to convene meetings of debenture holders within 30 days of default events for Jharkhand Road Projects Implementation Company Ltd and Century Sheltors Developers Pvt. Ltd.
• The inspection period covered July 31, 2022, to July 31, 2024.
• A Show Cause Notice was issued on January 5, 2026, and ITSL submitted a reply on January 16, 2026.

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