Utkarsh Small Finance Bank Settles LODR Violation Allegations With Rs 1.24 Cr

Utkarsh Small Finance Bank has resolved its case with the market regulator by paying over Rs 1.24 crore. The settlement pertains to alleged breaches of the Listing Obligations and Disclosure Requirements (LODR) Regulations, for which adjudication proceedings had commenced.

The settlement order was issued on 10 April.

The Securities and Exchange Board of India (Sebi) had appointed an adjudicating officer on 10 March 2023, who subsequently issued a showcause notice to the bank on 16 March 2023.

During the ongoing proceedings, the bank proposed a settlement to resolve the adjudication proceedings, neither admitting nor denying the alleged violations. The settlement application was filed on 1 November 2023.

Following discussions with SEBI's Internal Committee on 16 January 2024, the bank revised the settlement terms in accordance with the Settlement Regulations.

In its meeting on 5 February 2024, the regulator's High Powered Advisory Committee (HPAC) reviewed and endorsed the proposed settlement terms, recommending that the bank pay Rs 1,24,23,600 to settle the case.

Sebi's whole-time members panel approved HPAC's recommendation on 22 March 2024, with formal communication sent to Sebi on 27 March 2024.

The bank confirmed via email on 27 March 2024, that the settlement amount had been remitted.

However, the settlement order clarifies that Sebi retains the right to pursue enforcement actions under regulation 28 of the Settlement Regulations if it discovers any discrepancies or violations of undertakings by the bank.