HDFC Bank gets another warning from Sebi for non-compliance, second this week

HDFC Bank, India’s largest private sector lender, has been warned by market regulator Securities and Exchange Board of India (Sebi) for not complying with listing rules. The warning comes amid delayed disclosure of the resignation of Arvind Kapil, group head of HDFC Bank’s mortgage business.

“The Securities and Exchange Board of India has issued an administrative warning letter to the bank alleging failure to comply with certain provisions of the Sebi Listing Regulations in relation to the disclosures made by the bank regarding the resignation of Mr. Arvind Kapil,” HDFC Bank said in a filing with the exchange today. Zhong said: “I am a senior executive of the bank. “

What is the Sebi warning about?

According to the market regulator, the bank informed exchanges of Arvind Kapil’s resignation after a delay of three days. HDFC Bank informed the stock exchanges of Arvind Kapil’s resignation on April 30, 2024.

Following Kapil’s resignation, the bank appointed Sumant Rampal as group head, mortgage business, with effect from March 28, 2024.

As per Sebi’s Listing Obligations and Disclosure Requirements (LODR), listed entities are required to notify the exchanges of changes within the company within 12 hours. The lender violated Section 30(6) of the LODR Code.

“A listed entity shall first disclose to the stock exchange as soon as reasonably reasonably possible all events or information that is material to the LODR provisions… within 12 hours of the event or information occurring, in the event that the event or information originates from within the listed entity,” As per Sebi’s LODR specifications.

This is the second warning issued by the market regulator to HDFC Bank this week.

Earlier this week, HDFC Bank informed in an exchange filing that Sebi has issued a warning for non-compliance with certain norms on commercial banking, capital disclosure and insider trading.