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HDFC Bank Gets SEBI Warning Letter for Custody Non-Compliance

Written by: Team Angel OneUpdated on: Apr 3, 2025, 2:52 PM IST
SEBI has issued an administrative warning to HDFC Bank for custody-related regulatory lapses; the bank will take corrective steps with no financial impact reported.
HDFC Bank Gets SEBI Warning Letter for Custody Non-Compliance
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HDFC Bank has received an administrative warning letter from the Securities and Exchange Board of India (SEBI) for alleged non-compliance with certain regulatory guidelines. The warning is based on observations made during SEBI’s periodic inspection of the bank’s custody-related operations.

As of 10:56 am on April 3, HDFC Bank share price was trading at ₹1795.80, with the stock having gained 6.95% over the past six months and 21.36% in the past year.

Details of the Warning

In a regulatory filing dated April 2, 2025, HDFC Bank confirmed that SEBI had conducted an inspection of its custody activities. Following this, the bank received a letter citing lapses under the SEBI (Custodian) Regulations, 1996. These regulations apply to entities responsible for holding and safeguarding securities for clients, including institutional investors and mutual funds.

The bank stated in the filing:
“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.”

No Financial or Operational Impact Reported

HDFC Bank noted that the warning does not impact its financial position or daily operations. There has been no change reported in its functioning, and no penalty or monetary fine has been imposed in connection with the letter.

The bank has stated that it will take the necessary steps to address and rectify the lapses outlined in the SEBI communication.

Previous Warning 

This is not the first instance of SEBI issuing a warning to HDFC Bank in recent months. In December 2024, the bank had received a similar administrative warning letter for non-compliance related to its merchant banking activities. That warning, too, did not involve any financial penalty.

Conclusion

SEBI’s letter is administrative in nature and does not carry financial penalties. HDFC Bank has acknowledged the lapses and is to take corrective action as required under applicable guidelines.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 3, 2025, 2:52 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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