SEBI issues settlement order to Utkarsh Small Finance Bank
The Securities and Exchange Board of India (SEBI) has issued a settlement order to Utkarsh Small Finance Bank upon the payment of Rs 1.24 crore by the lender.
The Securities and Exchange Board of India (Sebi) is going to take further action to avoid incidents like the recent development involving Karvy Stock Broking, said the Chairman of the regulator on Monday.
Referring to the broking company’s example Sebi Chairman Ajay Tyagi said, “We have taken some steps and will take more steps.”
The regulator immediately took an action against Karvy Stock Broking after an NSE raised an alert.
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Tyagi commented on the issue saying that the regulator had taken prompt action regarding regulatory issues arising from companies and broking firms.
The regulator would take steps to avoid a situation like the recent developments when Karvy Stock Broking pledged Rs 2,300 crore securities of over 95,000 clients with HDFC Bank, ICICI Bank, Bajaj Finance and IndusInd Bank as collateral to raise money, he explained.
On the significance of the Insolvency and Bankruptcy Code (IBC), Tyagi said it would have a positive impact on the market in five years. Though recent developments regarding defaults and corporate mis-governance had impacted the investor sentiment, “it doesn’t mean everything is bad or wrong,” Tyagi said.
(With input from agencies)
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