SEBI Issues Warning to HDFC Bank Over Regulatory Violations

resr 5paisa Research Team

Last Updated: 12th December 2024 - 05:21 pm

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The Securities and Exchange Board of India (SEBI), the capital markets regulator, has issued an administrative warning to HDFC Bank for alleged violations of merchant banking regulations. The bank disclosed this development in a regulatory filing dated December 12, following observations made during an internal inspection.

HDFC Bank share price saw a slight dip in mid-day trading, declining by 0.5%.

According to the filing, SEBI's warning pertains to findings from a routine inspection of the bank's investment banking operations. The bank stated it is taking appropriate steps to address the issues highlighted in the letter. It further emphasized that the warning has no impact on its financial performance, operations, or other activities. The letter, dated December 9, was received by the bank on December 11.

The warning letter points to alleged non-compliance with specific provisions of the SEBI (Merchant Bankers) Regulations, 1992; SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018; and SEBI (Prohibition of Insider Trading) Regulations, 2015.

HDFC Bank assured that it is committed to resolving the matters raised by SEBI. Despite the allegations, the lender remains confident that its core financial and operational activities will remain unaffected. The bank reiterated its plan to take necessary corrective measures to address the regulator’s concerns.
 

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