Delhi, December 12, 2024 (Navroze Bureau) – The Securities and Exchange Board of India (SEBI) has issued an administrative warning to HDFC Bank for violating the rules. This warning was issued on 9 December 2024 and the bank received it on 11 December 2024. This action of SEBI has been taken on the basis of violations of rules revealed in the regular investigation of the investment banking activities of the bank. After a warning from SEBI, the stock of the bank saw a decline.
The letter alleges violation of certain provisions of SEBI (Merchant Banker) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and SEBI (Prohibition of Insider Trading) Regulations, 2015. The bank informed the stock exchange that it will take necessary steps to address the concerns and instructions mentioned in the letter.
HDFC Bank has clarified that SEBI’s administrative warning will have no impact on the financial or operational activities of the bank.
Let us tell you that administrative warning does not imply any penalty but it shows that SEBI has raised concerns on certain issues, which need to be rectified as per the rules.
SEBI also warned investors
SEBI on Monday (9 December) warned investors to avoid transacting on unregistered online platforms. SEBI has advised investors to be cautious and use only registered platforms.
SEBI said that some unregistered online platforms are selling unlisted debt securities to investors. SEBI said, “These platforms provide investors the opportunity to buy such securities, but they do not come under the purview of any rules or monitoring. There is neither a guarantee of investor protection nor any system to resolve complaints.”