SEBI Imposed Rs 1 Crore Fine on HDFC Bank

SEBI Imposed Rs 1 Crore Fine on HDFC Bank

The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 1 crore on HDFC Bank and the fine shall be payable within a period of 45 days for invoking securities pledged by BRH Wealth Kreators in violation of the regulator’s interim orders.

An order issued on by SEBI clarified that the bank had extended loan facility of Rs 87.75 crore against shares to BRH and BRH Commodities. Further, it invoked securities pledged to the extent of Rs 158.68 crore without giving any notice to the clients.

However, the invocation of pledged client securities was not in conformity with the directions contained in the interim order issued on 7 October 2019, the regulator said.

Accordingly, SEBI has, asked HDFC Bank to deposit an equivalent amount of Rs 158.68 crore along with interest from 14 October 2019 till date at the rate of 7% per annum, in a separate interest bearing escrow account, till the settlement of clients’ securities is reconciled.

Source: – Sebi fines HDFC Bank for invoking pledged securities

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