HDFC Bank discloses Sebi warning letter over regulatory non-compliance

HDFC Bank on Thursday disclosed receiving an administrative warning letter from the Securities and Exchange Board of India (Sebi).

 

The December 9 letter highlighted alleged non-compliance with certain provisions of regulations governing merchant bankers, capital issuance, and insider trading.

 

On its part, the bank has said that it will take the necessary steps to address Sebi concerns and directives. It also said that the warning letter will not have any impact on its financial, operational, or other activities.

 

Sebi’s observations came following a periodic inspection of the bank’s investment banking activities. The specific regulatory violations cited in Sebi’s letter are not mentioned in the stock exchange filing made by the bank.

 

Experts say an administrative warning is a less severe action than a fine. However, it serves as a formal notice of non-compliance.

 

Shares of HDFC Bank fell 0.3 per cent to end at Rs 1,858 on Thursday. The fall was in line with the 0.3 per cent decline in the Nifty Bank index.