Capital market regulator Sebi has issued an administrative warning on HDFC Bank alleging non-compliances with certain merchant banking rules, as revealed in an observation after an internal inspection, the lender informed exchanges in a regulatory filing on December 12.
Shares of HDFC Bank were marginally lower in mid-day trade, falling by 0.5%.
The administrative warning letter to the bank was issued "in relation to observations made during the course of its periodic inspection of investment banking activities undertaken by the Bank." The bank informed that it will take necessary steps to address the concerns mentioned in the warning letter and there is no impact on the financial, operation or other activities of bank, the company filing added. The administrative warning letter December 9 was received by the bank on December 11.
"The said warning letter alleges non-compliances with certain provisions of the SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and SEBI (Prohibition of Insider Trading) Regulations, 2015," said the lender.
HDFC Bank added that the alleges non-compliances were relating to "certain provisions of the SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and SEBI (Prohibition of Insider Trading) Regulations, 2015."
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