Utkarsh Small Finance Bank pays Rs 1.24 cr to settle allegations of violations of LODR Regulations

Pending the proceedings, the bank proposed to settle the adjudication proceedings initiated against it, without admitting or denying the findings of facts and conclusions of law, through a settlement order and filed a settlement application dated November 1, 2023.

After attending meeting with the Internal Committee of SEBI on January 16, 2024, in terms of the Settlement Regulations, the bank proposed revised settlement terms.

The regulator's High Powered Advisory Committee (HPAC) in its meeting held on February 5, 2024, considered the settlement terms proposed and recommended that the case may be settled upon payment of Rs 1,24,23,600/- (Rupees One Crore Twenty Four Lakh Twenty Three Thousand and Six Hundred) by the bank.

The panel of Sebi's whole-time members approved HPAC's recommendation on March 22, 2024, and it was communicated to Sebi on March 27, 2024.

The bank, through an email dated March 27, 2024, informed the regulator that the settlement amount has been remitted.

The settlement order stated, "This order is without prejudice to the right of SEBI to take enforcement actions, in terms of regulation 28 of the Settlement Regulations, including restoring or initiating the proceedings in respect to which the settlement order was passed against the applicants, if:
i. it comes to the notice of the Board that the applicant has not made full
and true disclosure; ii. applicant has violated the undertakings or waivers:"