MUMBAI: HDFC Bank has received a warning letter from the Securities and Exchange Board of India (SEBI) for alleged regulatory non-compliance. The bank disclosed on Thursday (December 12) that the warning pertains to violations of SEBI regulations related to merchant banking, capital and disclosure requirements, and insider trading.
The letter, dated December 9, was issued after SEBI’s periodic inspection of the bank’s investment banking activities. It highlights alleged lapses under the SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and SEBI (Prohibition of Insider Trading) Regulations, 2015.
HDFC Bank stated in its regulatory filing that it would take the necessary steps to address the concerns raised by SEBI. The bank clarified that the warning letter does not have any quantifiable impact on its financial or operational activities.
The warning letter follows SEBI’s standard compliance procedures, and HDFC Bank emphasized its commitment to resolving the issues in alignment with regulatory expectations.
Shares of HDFC Bank were trading 0.5 per cent lower in mid-day trading on December 12, reflecting a muted response from investors to the development.
