HDFC Bank Penalty: Market regulator SEBI has imposed a penalty of Rs 1 crore on the country’s largest private bank HDFC Bank for not following its interim orders. The fine has been imposed on the case of BRH Wealth Kreators.
New Delhi: HDFC Bank Penalty: If your bank account is in HDFC Bank, then this news is very important for you. In the BRH Wealth Kreators case, the market regulator Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 1 crore on HDFC Bank.
Why HDFC Bank fined?
In fact, SEBI has imposed this penalty on HDFC Bank because HDFC Bank sold some of the mortgaged shares of BRH Wealth Kreators, which is in violation of the interim order of the regulator. In an order, SEBI has also directed the bank to deposit interest of Rs 158.68 crore held in an escrow account and 7% per annum till a decision is reached in the case.
HDFC Bank shares broken after fines
The impact of the penalty imposed by SEBI on HDFC Bank also showed on its shares, the bank’s stock broke down by 2%. In fact, despite instructions from an interim order of SEBI, HDFC Bank had sold its mortgaged shares to BRH to recover its outstanding debt. The order was given by SEBI against BRH Wealth Creators and other units on 7 October 2019.
Penalty to be paid in 45 days
SEBI said that its interim order was not a final determination of the right of recovery, but was intended to prohibit the buying and selling of BRH’s assets until the investigation or forensic audit was completed, which did not compromise the interests of investors To go According to the Security and Exchange Board of India (SEBI), HDFC Bank will have to pay a fine of one crore in 45 days.
Although this penalty will not affect the bank account holders, but those who have invested in HDFC Bank shares have suffered, as the stock has broken 2 percent after this news.
