HDFC Bank receives second warning from SEBI
HDFC Bank receives second warning from SEBI
HDFC Bank, India’s largest private sector bank, has received a second warning from the Securities and Exchange Board of India (SEBI) this week for failing to comply with listing regulations. The latest warning relates to a three-day delay in disclosing the resignation of Arvind Kapil, the Group Head of Mortgage Business at the bank.
SEBI’s notice highlighted that the bank did not inform the stock exchanges about Kapil’s resignation within the required 12-hour timeframe, as mandated by the SEBI Listing Obligations and Disclosure Requirements (LODR). According to HDFC Bank’s filing, the resignation was notified on April 30, 2024, even though Kapil had stepped down earlier. Following his resignation, Sumant Rampal was appointed as the new Group Head of Mortgage Business, effective March 28, 2024.
Under SEBI’s LODR regulations, listed companies are required to disclose material events, such as a change in senior management, within 12 hours of occurrence. By missing this deadline, the bank violated Regulation 30(6) of the LODR norms.
This warning is the second issued to HDFC Bank in just a few days. Earlier this week, SEBI had issued a warning regarding the bank's non-compliance with merchant banking norms, capital disclosures, and insider trading regulations.