PNB said today that markets regulator Sebi has warned it for delay in disclosures to stock exchanges about the USD 2 billion fraudulent transactions allegedly carried out by Nirav Modi and Gitanjali Group of companies.
The PNB was defrauded of over USD 2 billion allegedly by diamond trader Nirav Modii and his associates by fraudulent use of Letters of Undertakings (LoUs) and Foreign Letters of Credit (LoC) in connivance with certain bank officials.
"The...non-compliances are viewed seriously and PNB is hereby warned and advised to be cautious in future to ensure compliance with all applicable provisions of the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations," Sebi said in a communication to the bank.
The Sebi's warning letter has been posted by the bank on stock exchanges as part of regulatory filing.
Accordingly, PNB has not complied with various norms.
The Sebi's communication refers to various disclosures made by PNB to stock exchanges during February and March this year regarding certain fraudulent transactions with respect to Nirav Modi group, Gitanjali group and others and referring of the same to law enforcement agencies.
Besides others, the charge sheet names two executive directors of the PNB and its former CMD Usha Ananthasubramanian.
These officials have been divested of all their functional pwoers.
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