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IDBI launches new trusteeship company
Our Banking Bureau
Mumbai, March 12: The Industrial Development Bank of India (IDBI) has launched a new company - "IDBI Trusteeship Services Ltd," (ITSL) for carrying out trusteeships and other related business. IDBI will reduce its stake in the new subsidiary to 49 pert cent after a few financial institutions (FIs)/banks take up stake in the new company along with an international strategic partner. The first meeting of the board of directors of ITSL, chaired by IDBI executive director AK Doda, was held on March 9, 2001. The new company proposes to venture into several new activities - mortgage trusteeship, security trusteeship, escrow agency, trust & retention agency and inter-creditor agency. Further, it also proposes to act as a corporate trustee for banks/financial institutions, mutual funds, offshore funds, pension funds, pension funds and provident funds (PFs). Further, overseas lenders who are increasingly showing interest in lending to Indian corporates are also on the lookout for such services.The government of India, vide its notification dated August 8, 2000, had notified amendments to the Sebi (Debenture Trustees) Rules and Regulations. In terms of these amendments, there has to be an 'arm's length' relationship between the trustees and the issuer of securities. Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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