Case Details
Entity Involved: IDBI Trusteeship Services Limited (SEBI Registration Number: IND000000460, PAN: AAACI8912J)
Order Details: Adjudication Order No. Order/JS/VC/2026-27/32424 issued on May 27, 2026
Investigation Period: Thematic inspection conducted for the period from July 31, 2022 to July 31, 2024
Financial Impact: Monetary penalty of ₹200,000 (Two Lakh Rupees) imposed under Section 15HB of the SEBI Act
Persons Involved
Adjudicating Officer: Jai Sebastian
Noticee Representatives: Mr. Satyan Israni (Advocate), Mr. Raghunathan S (Advocate), Mr. Dhruba Jyoti Bora (Executive VP, ITSL), and Mr. Priyesh Mishra (Employee of ITSL)
Violations and Allegations
SEBI initiated adjudication proceedings against IDBI Trusteeship for violating multiple provisions:
Proven Violations:
1. Regulation 15(1)(d) of DT Regulations, Clause 6.1 of SEBI Circular dated October 13, 2020, and Clause 3.3.1 of Chapter X of Master Circular for DTs: Failure to issue notices to debenture holders within 3 days of event of default and failure to maintain proof of delivery for:
- India Home Loans Limited (Default date: June 30, 2023) - Notice issued on July 5, 2023 (2 days late)
- ATS Infrabuild Pvt. Ltd. (Default date: June 11, 2023) - Notice issued on June 16, 2023 (2 days late)
2. Clause 6.2 of SEBI Circular dated October 13, 2020 and Clause 3.3.2 of Chapter X of Master Circular for DTs: Failure to incorporate mandatory clauses in notice sent to debenture holders for India Home Loans Limited (July 5, 2023 notice omitted):
- Provision for negative consent for enforcement of security
- Provision for positive consent for signing Inter Creditor Agreement
- Time period (15 days) for providing consent
3. Regulation 15(2)(b) of DT Regulations, Clause 6.3 of SEBI Circular dated October 13, 2020 and Clause 3.3.3 of Chapter X of Master Circular for DTs: Failure to convene meeting of debenture holders within 30 days of event of default for Century Sheltors Developers Pvt. Ltd. (Default dates: March 31, 2024 and June 30, 2024)
Dismissed Allegations:
1. Clause 2.5 of Chapter XIV of SEBI Circular dated April 13, 2022 and Chapter XII of Master Circular for DTs: Delay in verifying and updating default history on India BondInfo database for ATS Infrabuild Pvt. Ltd. and Future Supply Chain Solutions Ltd. - Insufficient evidence
2. Regulation 15(1)(e) of DT Regulations: Failure to appoint nominee director on board of issuer companies for:
- India Home Loans Limited (Default in redemption)
- Jharkhand Road Projects Implementation Company Ltd. (Two consecutive interest payment defaults)
- ATS Infrabuild Pvt. Ltd. (Two consecutive interest payment defaults)
- Century Sheltors Developers Pvt. Ltd. (Two consecutive interest payment defaults)
- Future Supply Chain Solutions Ltd. (Interest and redemption default)
- Dismissed due to mitigating circumstances including insolvency proceedings and debenture holder instructions
Penalties, Settlement Terms & Rulings
Monetary Penalty: ₹200,000 imposed under Section 15HB of the SEBI Act
Payment Deadline: 45 days from receipt of order through SEBI's online payment facility
Recovery Proceedings: If penalty not paid within 45 days, recovery proceedings may be initiated under Section 28A of SEBI Act
Actions, Compliance, and Future Obligations
The order requires IDBI Trusteeship to:
- Remit the penalty amount within 45 days
- Comply with all DT Regulations and SEBI circulars in future operations
- No specific corrective actions or compliance measures mandated beyond penalty payment
Final Ruling and Enforcement
The Adjudicating Officer found violations proven in three categories and imposed the monetary penalty. The order concludes that:
- Violations are not merely technical but substantial in nature
- The penalty is commensurate with the violations committed
- Recovery proceedings may be initiated for non-payment within stipulated timeframe
The order serves as final determination of the matter with no additional conditions or future obligations specified beyond the penalty payment.