Sebi Warns J&K Bank Over Regulatory Non-compliance

Sebi has issued a warning to J&K Bank for not complying with disclosure regulations regarding the appointment of MD & CEO Amitava Chatterjee. The disclosure was delayed by over an hour, which affected stock prices. Sebi stressed improving compliance to prevent future instances.

The Securities and Exchange Board of India (Sebi) has issued an administrative warning to J&K Bank for failing to comply with regulatory disclosure norms concerning the appointment of its Managing Director and CEO.

According to Sebi, the necessary disclosure was made on December 25, 2024, but it was delayed by one hour and 40 minutes past the mandated 24-hour timeframe following the Reserve Bank of India's approval of the appointment on December 24. J&K Bank acknowledged the notice by posting it on stock exchanges on Tuesday.

The appointment event was deemed significant due to a noticeable surge in both price and volume of the bank's stock between December 24 and December 26, the subsequent trading day. Sebi emphasized the seriousness of these violations and advised the bank to enhance their compliance standards to prevent recurrence. Continued non-compliance could lead to enforcement action under the SEBI Act of 1992.

(With inputs from agencies.)