HDFC Bank Ltd reported a slump in its stock, reaching a new 52-week low, attributing the decline to the impact of SEBI’s upcoming disclosure norms for Foreign Portfolio Investors (FPIs). The bank claims that the recent selling pressure on its shares is a consequence of the market reacting to the new regulations.
According to a report on Wednesday, HDFC Bank emphasized the need for a written communication from the Securities and Exchange Board of India (SEBI) regarding its understanding that beneficial ownership disclosure rules would not be applicable to companies with no identifiable promoter. The bank aims to clarify the situation and address concerns surrounding the application of the new norms.
As of 10:00 am, HDFC Bank’s shares were trading at ₹1,442.45, registering a nearly 1% decline.
The new disclosure norms are scheduled to take effect from February 1, contributing to heightened volatility in the equity market. The benchmark Sensex experienced a significant downturn, dropping over 1,000 points on Tuesday and erasing early intraday gains.
Foreign Portfolio Investors (FPIs) have been actively offloading shares in recent trading sessions, with HDFC Bank’s scrip on BSE closing 2% higher at Rs 1,456.3 on Wednesday. Over the past four trading days, FPIs have divested shares worth over Rs 27,000 crore, reversing the market indices’ previous record highs.
