HDFC Bank has received an administrative warning letter from the markets regulator regarding non-compliance with certain provisions of the SEBI Listing Regulations regarding the resignation of Arvind Kapil, a senior management employee of the Bank.
The regulator said there was a delay of three days in disclosing information regarding Kapil’s resignation.
Kapil is currently Poonawalla Fincorp’s MD & CEO. Prior to joining the Non-Banking Finance Company (NBFC), he was Group Head overseeing the mortgage banking business at HDFC Bank.
SEBI, in its communication to the Bank, referred to the violation of the clause pertaining to “change in directors, key managerial personnel (Managing Director, Chief Executive Officer, Chief Financial Officer, Company Secretary, etc.), senior management, Auditor and Compliance Office.”
Further, the bank violated one of the provisions of SEBI LODR regulations by failing to explain the delay in the disclosure filed on April 30, 2024.
“The above violation has been viewed seriously. You are, therefore, warned to be careful in future and advised to exercise due caution in future and avoid recurrences of such events, failing which appropriate enforcement action may be initiated….,” per SEBI’s administrative warning letter. The Bank has been asked to take corrective steps.
This is the second warning letter that the bank has received in a week.
Last week, the bank received an administrative warning letter from SEBI regarding observations made during its periodic inspection of the bank’s investment banking activities.
SEBI alleged non-compliance 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.
The bank said it will take necessary steps to address the concerns/directives mentioned in the letter.
