MUMBAI: The capital markets regulator Sebi has issued an administrative warning to HDFC Bank for alleged non-compliance with certain rules regarding its merchant banking subsidiary after the watchdog has found after an internal inspection.
In a regulatory filing on Thursday, the second-largest lender said, “The administrative warning letter was issued in relation to observations made during the course of its periodic inspection of investment banking activities undertaken by the bank."
The bank further said it will take necessary steps to address the concerns mentioned in the regulator’s warning letter and there is no impact on the financial, operational or other activities of the bank.
The administrative warning letter was dated December 9 and was received by the bank on December 11, the filing said.
"The 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 of 2015," said the lender.
The bank further said the alleged non-compliances are relating to certain provisions of all the aforesaid regulations of the regulator.