The Industrial Development Bank of India (now IDBI Bank Ltd) had set up its Debenture Trusteeship Cell in 1992. IDBI Trusteeship Services Limited was set up as a sequel to amendments in SEBI regulations in August 2000 that revised its Debenture Trusteeship Guidelines. The revised Debenture Trusteeship Guidelines stated the following points:
- Requiring Trustees to maintain an Arms-Length relationship with issuer/lenders.
- Perceived Conflict of Interest. Industrial Development Bank of India hived off its existing trusteeship business by setting up IDBI Trusteeship Services Limited (ITSL) on March 8th, 2001.
IDBI Trusteeship Services Limited was registered with the SEBI on September 4th, 2001. The company was jointly promoted by IDBI Bank Ltd., Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC) and Industrial Finance Corporation of India Limited (IFCI). ITSL was incorporated under the Companies Act 1956 as a government company under Section 619(1)(b) for a limited purpose. On April 1st, 2007, the Western India Trustee and Executor Company (WITECO) established in 1946 merged with ITSL. WITECO was the oldest Trusteeship company in India.
IFCI divested its entire shareholding in ITSL in September 2011 to IDBI Bank Ltd. since then ITSL became a subsidiary of IDBI Bank Ltd.