HDFC Bank gets warning letter from SEBI over regulatory non-compliance – CNBC TV18

HDFC Bank on Thursday (December 12) informed the stock exchanges that it has received an administrative warning letter from the Securities and Exchange Board of India (SEBI). The warning pertains to non-compliance with certain provisions of SEBI’s regulations related to merchant bankers, issue of capital and disclosure requirements, and prohibition of insider trading.

The warning was issued following a periodic inspection of the bank’s investment banking activities.

SEBI’s letter highlights alleged violations of the SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and SEBI (Prohibition of Insider Trading) Regulations, 2015.

According to the filing, the warning letter, dated December 9 (Monday), was received by HDFC Bank on December 11 (Wednesday).

HDFC Bank stated that it would take the necessary steps to address the concerns outlined in the warning.

The bank confirmed that the warning letter does not have any quantifiable impact on its financial or operational activities.

This notification follows SEBI’s standard procedure for regulatory compliance and is in line with the bank’s ongoing efforts to address regulatory concerns.

Shares of HDFC Bank were slightly lower by 0.5% in mid-day trading on December 12, following the receipt of the warning letter.