HDFC Bank received an administrative warning notice from the Securities and Exchange Board of India (Sebi) for failing to comply with many rules. The bank stated in an exchange filing on Thursday that Sebi had alleged non-compliance with rules.

The bank informed stakeholders that the appropriate corrective actions will be implemented to address Sebi's observations, even though it said the warning will not affect its financial or operational activities.

Which three regulations has Sebi flagged?

Regulations of the Sebi (Merchant Bankers), 1992

The registration, activities, and duties of merchant bankers in India are governed by this legislation. The rules mandate that merchant banks safeguard investors, abstain from conflicts of interest, and follow a stringent code of conduct. 

Regulations of the Sebi (Issue of Capital and Disclosure Requirements), 2018

In managing public issues, this rule places a strong premium on diligence, openness, and compliance.

Regulations of the Sebi (Prohibition of Insider Trading), 2015

The purpose of this rule is to stop insider trading in the securities industry. Employees, directors, and everyone else with access to unpublished price-sensitive information (UPSI) are all prohibited from trading on the basis of this knowledge.

HDB Financial Services submits a Rs 12,500 crore IPO

HDB Financial Services, HDFC Bank's non-banking financial branch, filed an initial public offering (IPO) application in October of this year for a maximum price of Rs 12,500 crore. This includes HDFC Bank selling up to Rs 10,000 crore of stakes and HDB Financial releasing up to Rs 2,500 crore in new shares.

HDFC Bank is issuing its first public offering (IPO) in six years to meet legal criteria that require large non-banking financial institutions (NBFCs) to list by September 2025.