Capital markets regulator SEBI on Monday imposed a fine of Rs 1 lakh on trusteeship services for non-compliance. debenture trustee norms and directed the unit to pay the amount within 45 days. This order has come after SEBI conducted an inquiry in this matter. Fortis Health Care Holdings Private Limited Based on a reference obtained from (FHHPL) IDBI Trusteeship Service Limited (ITSL) with reference to debt securities FHHPL,

The regulator observed that ITSL– A SEBI-registered intermediary – failed to take any action towards inspection of the books of accounts of FHHPL but later cited the non-cooperative behavior of FHHPL as the reason for its failure.

Soma Majumdar, Adjudicating Officer, SEBI, said, “I have observed that there has been no effort or initiative on the part of the noticeee to inspect the accounts or records of FHHPL, which in my opinion is specifically in the background of default by FHHPL. should have been deemed necessary.” ,

Accordingly, by failing to inspect the books of accounts, records, registers of FHHPL, the noticee has committed contravention of the DT (Debenture Trustee) Regulations.

It also noted that the notice giver had not taken any reasonable and necessary steps to fulfill its obligations, and therefore may be held liable for the neglect and failure of FHHPL.

“The notice has failed to discharge its obligations in a prompt, ethical and professional manner, thereby violating the code of conduct specified in the Debenture Trustee Rules,” Sebi said in the order.