Fino Payments Bank Settles SEBI Case for Rs 5.88 Lakh Over Disclosure Lapses
Fino Payments Bank has reached a settlement with SEBI, agreeing to pay Rs 5.88 lakh for disclosure violations related to fraudulent activities by its employees. The bank failed to make timely and complete disclosures about 15 complaints of fraudulent investment schemes, including not disclosing a KPMG investigation report within the required 24-hour timeframe. The settlement was made without admission or denial of findings, and SEBI has disposed of the adjudication proceedings initiated with a show cause notice dated October 8, 2024.

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Fino Payments Bank has reached a settlement with the Securities and Exchange Board of India (SEBI) regarding disclosure violations, agreeing to pay Rs 5.88 lakh to resolve the case. The settlement comes in response to the bank's failure to make timely and complete disclosures about fraudulent activities perpetrated by its employees.
Disclosure Violations
The case revolves around the bank's handling of 15 complaints alleging fraudulent investment schemes by its employees. Key points of the violation include:
- Fino Payments Bank received an investigation report from KPMG on November 8, 2023.
- The bank was required to disclose this information within 24 hours, by November 9, 2023.
- The bank failed to make adequate and timely disclosure as mandated under LODR (Listing Obligations and Disclosure Requirements) Regulations.
- Subsequent updates, as required by regulations, were also not provided.
Settlement Details
Aspect | Detail |
---|---|
Settlement Amount | Rs 5.88 lakh |
Nature of Settlement | Without admission or denial of findings |
Original Proceedings | Adjudication initiated with a show cause notice dated October 8, 2024 |
Case Disposition | SEBI disposed of the adjudication proceedings following the settlement |
Implications
This case highlights the importance of prompt and transparent disclosure practices for listed entities, especially in matters involving potential fraud or misconduct. It serves as a reminder for financial institutions to maintain rigorous compliance with SEBI's disclosure requirements to ensure market integrity and investor protection.
While the settlement allows Fino Payments Bank to resolve the issue without a formal admission of wrongdoing, it underscores the need for robust internal controls and reporting mechanisms to prevent such lapses in the future.
Historical Stock Returns for Fino Payments Bank
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+3.75% | +11.20% | +12.48% | +40.69% | -23.83% | -45.06% |