Private sector lender HDFC Bank on Monday (December 16) said it has received an administrative warning letter from the Securities and Exchange Board of India (SEBI) for alleged non-compliance with disclosure norms under the SEBI Listing Regulations.
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The warning pertains to the bank’s handling of disclosures regarding the resignation of senior management employee Arvind Kapil.
“…please note that Securities and Exchange Board of India has issued an administrative warning letter to the Bank thereby alleging non-compliances with certain provisions of the SEBI Listing Regulations, in relation to the disclosures made by the Bank with respect to the resignation of Mr Arvind Kapil, being a senior management employee of the Bank,” HDFC Bank said in a regulatory filing.
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The letter, dated December 10, 2024, was received by the bank’s compliance officer on December 16, 2024. SEBI cited violations of specific clauses related to timely and adequate disclosure of material events as outlined in its regulations and circulars.
“…you are, therefore, warned to be careful in the future and advised to exercise due caution in future and avoid recurrence of such instances, failing which appropriate enforcement action may be initiated in accordance with the provisions of SEBI Act…,” SEBI’s communication on December 10 said.
“You are advised to take corrective steps, to place this communication and the corrective steps before the Board of Directors and disseminate a copy of the communication on the website of BSE and NSE,” SEBI further stated.
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HDFC Bank stated that it will take necessary steps to address the concerns raised in the letter. The bank confirmed that the issue has no financial or operational impact on its activities.
Last week, HDFC Bank informed the stock exchanges that it had received an administrative warning letter from the SEBI. The warning pertains to non-compliance with certain provisions of SEBI’s regulations related to merchant bankers, issue of capital and disclosure requirements, and prohibition of insider trading.
The warning was issued following a periodic inspection of the bank’s investment banking activities.
Shares of HDFC Bank Ltd ended at ₹1,864.80, down by ₹7.25, or 0.39%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
