![CCI inquires debt trustee units of SBI, Axis, IDBI CCI inquires debt trustee units of SBI, Axis, IDBI](https://varindia.com/storage/news/uploads/2018/02/62500c1b5ed84.jpg)
India's antitrust body is investigating the trustee units of State Bank of India (SBI), Axis Bank and IDBI Bank for suspected intrigue on fees.
In a confidential order last year, the Competition Commission of India (CCI) stated that the Trustees Association of India, where the trio are founding members, substantially increased the fee for assisting companies raising debt and prevented members from going below a floor price, thereby hurting competition.
The association has launched a court challenge in Mumbai that seeks to repeal the antitrust investigation directive it has termed “illegal” and “capricious.
The antitrust probe and the impending court hearing, details of which have not been previously reported, could have an impact on India‘s nearly $500 billion corporate debt market by altering costs and affecting the way trustees operate.
The SBICAP Trustee Company, Axis Trustee and IDBI Trusteeship are among the leaders in the business in India overseeing hundreds of billions of dollars by rendering trustee services for not just debt securities, but also real estate and other investment funds.
The trustee association has defended itself in the court filings by saying the higher fee was justified as their cost burden had gone up over the years due to enhanced regulatory compliance requirements.
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