SEBI penalises Catalyst Trusteeship ₹2 lakh over default-disclosure delays
Debenture trustees must meet CRA, press-release and India BondInfo default timelines
Change
On 2026-05-25, SEBI imposed a ₹2 lakh penalty on Catalyst Trusteeship for delayed and incorrect default-related disclosures after an issuer default.
Why it matters
The order makes default-disclosure timelines an independent obligation for debenture trustees. Issuer disclosure, investor sophistication or later correction does not replace the trustee’s duty to give accurate CRA information, issue timely public disclosure and update India BondInfo within the prescribed timelines.
Implications
- — Debenture trustees must provide accurate ISIN-wise payment or default information to CRAs not later than one day after the due date — SEBI held that Catalyst’s revised CRA intimation was delayed by 11 days.
- — Debenture trustees must issue a press release on issuer default not later than the next day after occurrence — SEBI held that Catalyst’s July 12 press release for a June 30 default breached the mandatory disclosure timeline.
- — Debenture trustees must verify and update issuer or instrument default history in India BondInfo within seven days of knowledge of default — SEBI held that Catalyst breached the deadline by updating the database only on July 12, 2024.
Who is affected
- — SEBI-registered debenture trustees
- — Debenture-trustee compliance teams handling issuer defaults
- — Indian listed debt market participants relying on CRA and India BondInfo default disclosures
What to watch
- — 45 days from receipt of the order — Catalyst Trusteeship must pay the ₹2 lakh penalty or face recovery proceedings under section 28A of the SEBI Act
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