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Sebi warns PNB for late disclosures in Nirav Modi scam

Press Trust of India  |  Mumbai 

PNB said today that markets regulator has warned it for delay in disclosures to stock exchanges about the USD 2 billion fraudulent transactions allegedly carried out by and of companies.

Taking serious note of delay in making disclosures, has issued a warning letter to state-owned -- the country's second largest lender.

The PNB was defrauded of over USD 2 billion allegedly by and his associates by fraudulent use of Letters of Undertakings (LoUs) and Foreign Letters of Credit (LoC) in connivance with certain 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 LODR (Listing Obligations and Disclosure Requirements) Regulations," Sebi said in a communication to the

The Sebi's warning letter has been posted by the bank on stock exchanges as part of regulatory filing.

Sebi observed that there were delays of 1-6 days by PNB in making disclosures to the stock exchanges pertaining to the filing of reports/complaints with Reserve Bank of and

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 group, and others and referring of the same to law enforcement agencies.

Earlier this week, filed two charge sheets in the fraud case in a

Besides others, the charge sheet names two executive directors of the PNB and its former CMD

Ananthasubramanian is currently and MD of another

These officials have been divested of all their functional pwoers.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 16:45 IST