The adjudication proceedings were initiated and notice was sent to the firm by Sebi in September 2018 after observing alleged violations of debenture trustee norms and relevant circulars.
Axis Trustee was acting as debenture trustee for Reliance Communications (RCom) which had defaulted on repayments of non-convertible debentures (NCDs) issued by it, Sebi said in an order dated Apr 2, 2019.
Therefore, it was alleged that Axis being the debenture trustee did not carry due verification to ascertain that debenture holders have been paid the dues in a timely manner.
Additionally, Axis neither shared the information on non-cooperation of Reliance Communications with the credit ratings agencies nor it issued a press release or inform Sebi regarding default by RCom in making payment of principal and interest amount to debenture holders on due dates among other alleged lapses, Sebi said.
While the proceedings were pending, Axis Trustee filed a settlement application with Sebi without admitting or denying the guilt.
In January 2019, the firm in its meeting with the internal committee of Sebi proposed to pay Rs 15.93 lakh towards the settlement chRead More – Source