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Nirav Modi scam: Sebi raps PNB for disclosure lapses in quarterly results

Regulator also cites delays in lender's filings with stock exchanges, but lets it off with a warning

BS Reporter  |  Mumbai 

Pedestrians walk past a Punjab National Bank office in Mumbai (Photo: Reuters)

The (Sebi) has rapped state-owned Punjab National Bank (PNB) over compliance with disclosure related norms. The beleaguered lender on Thursday informed investors, through a stock exchange notification, about a warning letter dated May 15 from regarding disclosures made in the developments pertaining to the group and Gitanjali group fraud.

“There are delays of 1-6 days by PNB in making disclosures to the stock exchange pertaining to filing of the reports, complaints with the (RBI) and (CBI),” the regulator has written to the lender, charging it with non-compliance of several clauses in the Listing Obligations and Disclosure Requirements (LODR).

The letter also highlights lack of disclosure pertaining to the fraud in the quarterly results.

“PNB has not made any provisions, disclosures with respect to fraud of Rs 2.8 billion in the financial statements for the quarter ended December 2017 and thereby not complied with Clause I of Part A of Schedule IV read with Regulation 33(1)(e) of LODR Regulations,” the regulator has said.

The regulator, however, let off PNB with just a warning.

“The aforesaid 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 Regulations,” Sebi has written to the lender.

First Published: Fri, May 18 2018. 00:18 IST