Sebi issues warning to J&K Bank for delayed disclosure of MD appointment

Capital markets regulator Sebi has issued an administrative warning letter to J&K Bank for regulatory non-compliance with regard to disclosure of appointment of its MD & CEO.

The disclosure was made on December 25, 2024 at 4:53 PM with a delay of 1 hour 40 minutes beyond the stipulated timeline of 24 hours from the time for occurrence of the event (RBI's approval) i.e. December 24, 2024 at 3:14 PM, Sebi's letter posted by J&K Bank on stock exchanges on Tuesday said.

"The event relating to appointment of MD & CEO is considered significant because of the surge in price as well as volume movement of the bank's scrip, traded on the platform of the stock exchanges, between the date of occurrence of the event i.e. December 24, 2024 and the next trading day i.e. December 26, 2024," the letter said.

 

The bank had made a disclosure on December 25, 2024 (trading holiday) regarding appointment of Amitava Chatterjee as Managing Director and Chief Executive Officer for a period of three years to be effective from December 30, 2024.

The above violations have been viewed seriously, it said.

"You are advised to be careful in future and improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action would be initiated in accordance with the provisions of SEBI Act, 1992 and Rules and Regulations framed thereunder," Sebi said.