HDFC Bank has received an administrative warning letter from the market regulator regarding non-compliance with certain provisions of the SEBI Listing Regulations regarding the dismissal of Arvind Kapil, a senior management employee of the Bank.
The regulator said there was a three-day delay in making public information about Kapil’s resignation.
Kapil is currently MD & CEO of Poonawalla Fincorp. Before joining Non-Banking Finance Company (NBFC), he was group head and oversaw the mortgage banking business at HDFC Bank.
SEBI in its notice to the Bank referred to the violation of the clause relating to “change in directors, key management personnel (Managing Director, Chief Executive Officer, Chief Financial Officer, Company Secretary, etc.), senior management, auditor and Compliance Office.”
Further, the bank has violated one of the provisions of the SEBI LODR regulations by not explaining the delay in the disclosure filed on April 30, 2024.
“The above violation is taken seriously. You are, therefore, cautioned to exercise caution in future and are advised to exercise due caution and avoid recurrence of such occurrences, failing which appropriate enforcement action may be initiated…,” SEBI’s administrative warning letter said. The Bank has been asked to take corrective measures.
This is the second warning letter the bank has received within a week.
Last week, the bank received an administrative warning letter from SEBI following observations made during its periodic inspection of the bank’s investment banking operations.
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.
