Securities and Exchange Board of India (SEBI) on Thursday imposed a penalty of one crore on HDFC Bank for invoking securities pledged by stockbroker BRH Wealth Kreators in violation of the regulator’s interim directions, ET Now reported.
The fine is to be paid within 45 days, said SEBI.
Moreover, the bank has been ordered to transfer Rs 158.68 crore with 7% interest per annum till the issue of settlement of clients is reconciled. HDFC has been asked to update about the mishappenings to Reserve Bank of India.
The risen issue is a result on account of non-conformity by HDFC Bank with the directions contained in the interim order issued by SEBI against BRH Wealth Kreators and other entities on October 7, 2019.
SEBI said the interim order was not an ultimate determination of the rights of recovery of the bank but rather intended to ensure a freeze on the assets of BRH until completion of the investigation or forensic audit and that the investors’ interests are not compromised in any manner whatsoever.
