SEBI issues administrative warning to HDFC Bank for lapses in custody operations

HDFC Bank on Wednesday disclosed that it has received an administrative warning letter from the market regulator Securities and Exchange Board of India (SEBI) for alleged non-compliance in its custody-related operations.

In a regulatory filing with both the BSE and NSE, the private sector lender stated that SEBI's letter, dated April 2, came after an inspection of its custody activities. The market regulator flagged certain lapses in compliance with regulatory guidelines under the SEBI (Custodian) Regulations, 1996.

“Pursuant to inspection of custody activities undertaken by the bank, SEBI issued administrative warning letter for alleged non-compliance with certain regulatory guidelines, which are applicable to custodians,” the bank said in the filing.

HDFC Bank clarified that the warning has no financial or operational impact on the bank’s activities. "No impact" was reported in terms of financials, operations, or other measurable aspects, the filing noted.

The bank further assured that it will take necessary corrective measures. “The Bank will take necessary steps to rectify the lapses mentioned in such letter,” the statement added.