AIF Trustee

Alternative Investment Funds or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors. ITSL acts as a Trustee for AIFs set up as a Trust. We at ITSL provide custom-made, end to end solutions for an AIF which includes safe keeping of documents, fund accounting and banking solutions through our parent Bank “IDBI Bank Limited” IFSC Banking Unit. ITSL works closely with the Investment Manager for ongoing compliance and reporting, advising and assisting in administration/operation of Trust, structuring and setting up of Trust and Registration, appointment of various service providers (like RTA, Custodian fund Admin), etc. As an AIF Trustee, ITSL ensures that the monies of the schemes are invested to achieve the objectives of the schemes and in the interest of the investors, the assets and liabilities of each scheme are segregated and ring-fenced from other schemes of the FME and the bank accounts and securities accounts of each scheme are segregated and ring-fenced, different activities of FME are carried at Arm’s length and interest of investor under one activity are not being compromised with those of any other scheme or of other activities of the FME, quarterly review of all transactions carried out between the schemes, FME and its associates, review yearly basis the net-worth of FME to ensure compliance with the threshold provided in Second Schedule on a continuous basis, etc.

Facility Agent

The facility agent (sometimes just referred to as the ‘agent’) is the representative of the syndicated lenders under the facility agreement and can be seen as the primary point of contact between the borrower and the lenders. It carries out an administrative role in relation to the facility. It manages the flow of communication and funds between the borrower and the lenders. As a Facility Agent, ITSL provides specialized services for complex structured transactions including opening the Banks Accounts and Demat Accounts, advice on the suitability of the transaction on operational aspects, monitor the completeness of the conditions precedent and conditions subsequent as per the Facility agreement, liaison with the Legal Counsel for drafting, vetting and finalization of transaction documents, collate all documents pertaining to pre-disbursement conditions including KYC documents and assess the completeness of all the relevant information/documents, issue Drawdown notice upon compliance of Condition precedents and Conditions subsequent as applicable, prepare advices for interest payment/ principal repayment/rate fixing/ rate roll over of loan/ agency fees and communicating the same to Lenders and Borrowers in a timely manner, etc.

Security Trustee

Security Trusteeship is a contractual arrangement amongst Borrower, Lenders (who are NBFCs, Banks & Financial Institutions), and the Security Trustee. This arrangement is established by executing a document called Security Trustee Agreement (STA). The security trustee, being a trustee rather than an agent, does in principle owe a fiduciary duty to the beneficiaries of the trust property, namely the lenders in a syndicated loan. ITSL fulfills a range of responsibilities in its capacity as Security Trustee, like acting as a single point of contact for the Borrower and Lenders, holding security on behalf of lenders, ensuring compliance with all regulatory filing/registration procedures vis-à-vis security creation, advising on security creation and related documentation procure to Borrower and Lenders, etc.

Debenture Trustee

A debenture trustee enters into an agreement with the issuer before the opening of the subscription list for issue of debentures, which shall have the understanding in relation to allocation of duties and responsibilities and other relevant details. As a debenture trustee, ITSL ensures that adequate disclosures are made to the debenture holders, in a comprehensive and timely manner so as to enable them to make a balanced and informed decision, takes all reasonable steps to establish the true and full identity of each of its clients, and of each client’s financial situation and maintain record of the same, shares information available with it regarding client companies, with credit rating agencies, etc.

For any queries, please reach out to ITSL at sandesh.vaidya@idbitrustee.com or malvika.kapur@idbitrustee.com.