Sebi issues HDFC Bank a warning letter again for non-compliance

Mumbai: Markets regulator Securities and Exchange Board of India (Sebi) has issued a regulatory warning to HDFC Bank over the delay in disclosing the resignation of Arvind Kapil, who quit the bank to join Poonawalla Fincorp as CEO. This is the second such caution for the lender in one week.

HDFC Bank disclosed to stock exchanges on Monday evening about the administrative warning from Sebi over non-compliance with listing regulations.

Kapil was heading the mortgage business at HDFC Bank and had quit in March 2024. The Sebi letter states that the company disclosed resignation of Kapil with a delay of three days, and that it also failed to provide appropriate reasons for the delayed disclosure. As per the Sebi norms, listed entities must inform the exchanges about a change within the company in 12 hours.


"The violation has been viewed seriously," the letter states. "You are warned to be careful in future and advised to exercise due caution in future and avoid recurrence of such instances, failing which appropriate enforcement action may be initiated in accordance with the provisions of Sebi Act, 1992." Sebi advised the lender to take steps and place its communication and the corrective steps before the board of directors.