Utkarsh SFB pays Rs 1.24 crore to settle disclosure violation case with Sebi

Utkarsh Small Finance Bank on Wednesday settled with capital markets regulator Sebi in a case pertaining to disclosure norms and paid Rs 1.24 crore towards the settlement charges.

The order came after the applicant (Utkarsh Small Finance Bank) proposed to settle the instant proceedings initiated against it without "admitting or denying" the findings of facts and conclusions of the law through a settlement order.

"The instant adjudication proceedings initiated against applicants vide Show Cause Notice (SCN) dated March 16, 2023, is disposed of in terms of the settlement regulations," Sebi's Adjudicating Officer Barnali Mukherjee said in the order.

The Securities and Exchange Board of India (SEBI) had initiated adjudication proceedings against Utkarsh Small Finance Bank Ltd for the alleged violations of LODR (Listing Obligations and Disclosure Requirements) rules and other market norms.

Following this, a show cause notice was issued by the market regulator to the applicant on March 16, 2023, for the alleged violation of the rules, the regulator said. Thereafter, Utkarsh Small Finance Bank filed the settlement application in November 2023, with the regulator for the alleged violation of the rules.

After that, Sebi's High Powered Advisory Committee (HPAC) in its meeting considered the settlement terms proposed and recommended that the case may be settled upon payment of Rs 1.24 crore. Accordingly, Utkarsh Small Finance Bank paid the amount and settled the case.

"Therefore, in view of the acceptance of the settlement terms and the receipt of the settlement amount, the instant adjudication proceedings initiated against applicants vide SCN dated March 16, 2023, is disposed of the Settlement Regulations on the basis of the settlement terms," Mukherjee said.