Intimation under Regulation 30 of SEBI (LODR) Regulations, 2015

IDBI Bank Ltd. intimates that its subsidiary, IDBI Trusteeship Services Limited (ITSL), has been penalized by SEBI through an adjudication order dated May 27, 2026.

Nature and Details of the Action

SEBI issued a Show Cause Notice (SCN) dated January 05, 2026 under rule 4(1) of SEBI (Procedure for Holding Inquiry and Imposing penalties) Rules, 1995 read with section 15-I of SEBI Act, 1992. The notice was issued in connection with a thematic inspection of Debenture Trustees regarding actions taken in cases of event of default by issuers. The inspection covered the period from July 31, 2022 to July 31, 2024.

A personal hearing was conducted with the Adjudicating Officer on February 20, 2026, followed by a comprehensive written submission filed on February 23, 2026 along with additional documents requested during the hearing.

Consequently, SEBI passed Adjudication Order No. Order/JS/VC/2026-27/32424 dated May 27, 2026, imposing a monetary penalty of ₹2,00,000 on ITSL.

Date of Receipt of Order

The order was received on May 27, 2026.

Details of Violations/Contraventions

The violations cited include:

  • Regulation 15(1)(d) of the SEBI (Debenture Trustees) Regulations, clause 6.1 of SEBI circular dated October 13, 2020, and clause 3.3.1 of Chapter X of Master Circular for DTs dated July 06, 2023 and May 16, 2024
  • Clause 6.2 of SEBI circular dated October 13, 2020 and clause 3.3.2 of Chapter X of Master Circular for DTs dated July 06, 2023
  • Regulation 15(2)(b) of the SEBI (Debenture Trustees) Regulations, clause 6.3 of SEBI circular dated October 13, 2020, and clause 3.3.3 of Chapter X of Master Circular for DTs

Financial and Operational Impact

The disclosure explicitly states: "Nil impact on financial, operation or other activities of the IDBI Bank, quantifiable in monetary terms to the extent possible."

The monetary penalty of ₹2,00,000 has been imposed solely on IDBI Trusteeship Services Ltd. (ITSL), subsidiary of IDBI Bank Ltd., with no financial impact on the parent bank.