The Securities and Exchange Board of India (SEBI) recently issued a settlement order to Utkarsh Small Finance Bank, requiring the payment of Rs 1.24 crore by the lender. This development stems from SEBI’s issuance of a show-cause notice dated March 16, 2023, to Utkarsh Small Finance Bank, alleging violations of specific provisions of the Listing Obligations and Disclosure Requirements (LODR) Regulations.
In response to the show-cause notice, Utkarsh Small Finance Bank filed a settlement application, prompting SEBI to dispose of both the settlement application and the show-cause notice through the present settlement order.
SEBI clarified that while the bank proposed to settle the proceedings without admitting or denying the findings of facts and conclusions of law, it submitted a settlement application pending the adjudication proceedings. After engaging in a meeting with SEBI’s internal committee on January 16, 2024, the bank proposed revised settlement terms on January 27, 2024.
The High Powered Advisory Committee (HPAC) reviewed the proposed settlement terms and recommended settling the case upon the payment of Rs 1.24 crore by the bank as the settlement amount.
The settlement order, issued pursuant to Section 15JB of the SEBI Act read with Regulation 23(1) of the settlement regulations, signifies the culmination of the adjudication proceedings initiated against Utkarsh Small Finance Bank.
This development underscores the commitment of regulatory authorities to uphold transparency and adherence to regulatory frameworks within the financial sector. It also emphasizes the importance of financial institutions complying with regulatory requirements to maintain trust and integrity in the market.
As Utkarsh Small Finance Bank navigates through this settlement process, stakeholders and investors will keenly observe further developments, underscoring the significance of regulatory compliance in fostering a robust and sustainable financial ecosystem.