IDBI Bank on Saturday said it has deposited Rs 25 lakh towards Recovery Expense Fund (REF) with its designated exchange NSE. Privately placed debt securities/bonds worth Rs 14,695.60 crore are outstanding on IDBI Bank as of March 20, 2021, as per the lender. The bonds are placed in 22 different tranches with issue size ranging from Rs 1 crore to Rs 3,000 crore.

In October last year, markets regulator Sebi had asked listed companies, proposing to list debt securities, to set up REF so that action could be taken by debenture trustees in case of defaults by the issuer.

"IDBI Bank has deposited Rs 25 lakh in cash, towards REF with its designated stock exchange —National Stock Exchange of India Ltd (NSE) on March 20, 2021," IDBI Bank said in a regulatory filing.

SBICAP Trustee Company and AXIS Trustee Services are the two debenture trustees of these bonds.

Sebi in its October circular on REF had said the issuer proposing to list debt securities will deposit an amount equal to 0.01 per cent of the issue size subject to a maximum of Rs 25 lakh per issuer towards the REF with the designated stock exchange as disclosed in its offer document.

The issuer company is expected to create the fund at the time of issuance of debt securities that may be utilised by the debenture trustees in the event of default for taking appropriate legal action to enforce the security.

The directions have come into force from January 1, 2021.