HDFC Bank share price declines 1.3% after second warning letter from SEBI in a week

In early trade, the stock declined as much as 1.34% to ₹1840.15 apiece on the National Stock Exchange (NSE). At 10:48 am, it was down 1% to 1,845.50 a unit.

The market capitalisation of the private lender stands at ₹14,10,860.93 crore.

HDFC Bank gets administrative warning from SEBI

In an exchange filing on Monday, HDFC Bank informed that SEBI issued an administrative warning letter to the bank alleging non-compliance with the market regulator's listing regulations regarding the resignation of Arvind Kapil, the head of the bank's mortgage business.

"The said warning letter alleges violation of Para 7 of Part A of Annexure I to SEBI circular no. SEBI/HO/CFD- PoD 1/P/CIR/2023/123 dated July 13, 2023 read with clause 7 of Para A of Part A of Schedule III of the SEBI Listing Regulations and Regulation 30 (2) and second proviso to Regulation 30 (6) of SEBI Listing Regulations," said SEBI.

The market regulator advised the bank to exercise due caution in the future and avoid the recurrence of such instances. "Failing which appropriate enforcement action may be initiated," it added.

The HDFC Bank said that the warning letter will not have any financial or operational impact.

"The said warning letter alleges non-compliances with certain provisions of the SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and SEBI (Prohibition of Insider Trading) Regulations, 2015," it said.

Meanwhile, HDFC Bank will declare its financial results for the third quarter of the current fiscal year on January 22, 2025, the company said.