Markets regulator Securities and Exchange Board of India (SEBI) has issued an administrative warning letter to HDFC Bank alleging non-compliance of some provisions related to its investment banking operations. The allegations include non-compliance related to merchant bankers regulations, disclosure rules and insider trading norms, HDFC Bank said in an exchange filing on Thursday.
“The said warning letter alleges non-compliance with certain provisions of the SEBI Merchant Bankers Regulations, 1992; Issue of Capital and Disclosure Requirements Regulations, 2018 and Prohibition of Insider Trading Regulations, 2015,” said the bank in a regulatory filing to the exchanges.
The country’s largest private lender said that the administrative warning will have no financial or operational impact on its activities and it will take necessary steps to address SEBI’s observations.
“The Bank will take necessary steps to address the concerns/directives mentioned in the letter,” stated the bank in the filing to the exchanges. The observations were made during SEBI’s periodic inspection of investment banking activities of HDFC Bank.
HDFC Bank shares closed at Rs 1,858 apiece on the Bombay Stock Exchange, down 0.3% from the previous close. Shares of the private lender have seen a strong run recently, rallying 13% over the last 12 months and 8% on a year-to-date basis.