One crore fine imposed on country's largest private bank, know what is the matter
The Security and Exchange Board of India (SEBI) on Thursday imposed a penalty of Rs 1 crore on HDFC Bank in the BRH Wealth Creators case. SEBI has imposed the penalty for selling some mortgaged shares of BRH Wealth Creators in violation of an interim order of the regulator by HDFC Bank.
In an order, SEBI has also directed the bank to deposit Rs 158.68 crore and interest at the rate of seven per cent per annum in an escrow account until a decision is reached in the case.
In fact, contrary to the instructions of an interim order of SEBI, HDFC sold its mortgaged shares to BRH to recover its outstanding debt. This order was given by SEBI against BRH Wealth Creators and other units on 7 October 2019.
SEBI said that its interim order was not a final determination of the right of recovery, but was intended to prohibit the Kharif horse trading of BRH's assets till the completion of the investigation or forensic audit, so that the interests of investors are not compromised in any way.
According to the Security and Exchange Board of India (SEBI), HDFC Bank will have to pay a fine of one crore in 45 days.