SEBI finds IDBI Trusteeship Services misled on data updates during 2022–2024 inspection

This is an adjudication order by SEBI regarding IDBI Trusteeship Services Limited (ITSL) for alleged failures to take required actions, such as notifying investors and appointing directors, when issuer companies defaulted on their debentures.

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 these notices.
• SEBI alleged ITSL failed to include mandatory clauses (such as consent provisions) in notices sent to debenture holders.
• SEBI alleged ITSL failed to update default history on the India BondInfo database within 7 days for ATS Infrabuild Pvt. Ltd. and Future Supply Chain Solutions Ltd.
• SEBI alleged ITSL submitted false information to SEBI during inspection regarding the timeliness of database updates.
• SEBI alleged ITSL failed to appoint nominee directors on the boards of the five mentioned issuer companies as required by regulations.
• SEBI alleged ITSL failed to convene meetings of debenture holders within 30 days of default for Jharkhand Road Projects Implementation Company Ltd and Century Sheltors Developers Pvt. Ltd.
• The order cites violations of the SEBI (Debenture Trustees) Regulations, 1993, and various SEBI circulars and Master Circulars.

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