2 months ago
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India’s markets regulator has begun a preliminary review of the resignation missive of erstwhile HDFC Bank president Atanu Chakraborty for imaginable violations of rules governing directors of listed companies, 2 sources acquainted with the substance said.
Mr. Chakraborty told Reuters helium was not alert of immoderate introspection by the regulator.
In his resignation letter, Mr. Chakraborty cited “certain happenings and practices wrong the bank” that helium said were “not successful congruence” with his idiosyncratic values and ethics.
He did not elaborate. The missive triggered an 8.7% descent successful the banal the following day and wiped $16.3 cardinal successful marketplace worth implicit 3 sessions.
SEBI making checks
A section of the Securities and Exchange Board of India (SEBI) that oversees firm disclosures and governance is examining the erstwhile president and different directors for alleged failures to bash their fiduciary duties, the sources said.
“[The] introspection is to verify claims made successful the resignation missive and whether different directors were alert of immoderate worldly accusation and did not papers them,” 1 said.
The Reserve Bank of India, the superior regulator successful the case, said past week it had recovered “no worldly concerns connected grounds arsenic regards its [bank’s] behaviour oregon governance”.
“We are besides checking if determination was immoderate misreporting of immoderate events which could interaction number investors,” the archetypal root said, adding that SEBI was reviewing the adequacy of disclosures by both the slope and Mr. Chakraborty.
India’s rules for listed companies necessitate autarkic directors to measure the prime and timeliness of accusation travel betwixt absorption and the board.
Email queries sent to HDFC Bank and SEBI were not instantly answered.
Mr. Chakraborty told Reuters by substance that helium had not made immoderate insinuations successful his letter. He added that nary 1 from the regulator had contacted him and that helium was unaware of immoderate SEBI review.
Earlier this week, SEBI Chairman Tuhin Kanta Pandey, without commenting connected idiosyncratic cases, said autarkic directors indispensable travel the codification of behaviour set retired successful regulations.
“No 1 tin marque insinuations without due grounds being recorded,” Mr. Pandey said. “Any specified comments bash person an interaction connected number shareholders.... Independent directors person to beryllium liable successful presumption of what they say.”
HDFC Bank said connected Tuesday (March 14, 2026) it had appointed outer instrumentality firms to independently measure the concerns raised successful the resignation letter. Mr. Chakraborty told Reuters the firms had not contacted him.
