New Delhi, Regulator CCI has directed the Trustees’ Association of India, Axis Trustee Services and others to cease and desist from unfair business practices after they were found fixing benchmark price for providing debenture trusteeship services.
Competition Commission of India (CCI) keeps a tab on anti-competitive practices and takes steps to promote fair competition in the market place.
The watchdog has passed an order on Wednesday against Trustees’ Association of India (TAI), IDBI Trusteeship Services Ltd, Axis Trustee Services Ltd and SBI CAP Trustee Company Ltd and their respective individuals.
They have been directed to “cease and desist from anti-competitive conduct”, CCI said in a release on Thursday.
“Based on the minutes of meeting of Trustees’ Association of India and certain emails exchanges, the Commission found that the opposite parties fixed the benchmark price, for providing debenture trusteeship services, during the period of FY 2020-21 and 2021-22,” the release said.
CCI noted that such collective fixing of minimum price/fee by Trustees’ Association of India, for the provision of debenture trusteeship services, and other follow-on actions prevented independent commercial decision making by the debenture trustees and amounted to cartelisation in terms of the provisions of the Competition Act.
The regulator also found that the conduct amounts to limiting and controlling the supply/market for provision of said services, as members of Trustees’ Association of India as well as non-members were dictated not to provide services to the issuers of debentures below the benchmark fee.
According to the release, certain officials of the Trustees’ Association of India, IDBI Trusteeship Services, Axis Trustee Services and SBI CAP Trustee Company were also found to have contravened the norms.
“However, in consideration of the mitigating factors, no monetary penalty was imposed on the opposite parties and their individuals,” it said.
