SEBI Issues Warning to HDFC Bank for Regulatory Lapses

The Securities and Exchange Board of India (SEBI) has issued an administrative warning letter to HDFC Bank for non-compliance with regulatory guidelines related to custody activities. The bank acknowledged the lapses and plans to rectify them. This follows an earlier warning concerning merchant banking activities.

The Securities and Exchange Board of India (SEBI) has taken decisive action against HDFC Bank, issuing an administrative warning letter for failing to comply with regulatory guidelines.

According to a recent regulatory filing by HDFC Bank, SEBI's warning follows a periodic inspection of the bank's custody activities, revealing discrepancies in adherence to guidelines specific to custodians.

In response, HDFC Bank committed to addressing the identified issues. This latest warning adds to a previous caution issued by SEBI in December 2024 concerning regulatory non-compliance in merchant banking activities.

(With inputs from agencies.)