HDFC Bank Receives SEBI Warning for Custodian Activities Non-Compliance
HDFC Bank received an administrative warning letter from SEBI for alleged non-compliance with custodian activity regulations. The bank acknowledged the warning and committed to addressing the issues. HDFC Bank stated this action would not impact its financial or operational activities. This follows a similar warning in December 2024 regarding merchant banking activities, indicating increased regulatory scrutiny.

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HDFC Bank , one of India's leading private sector banks, has recently come under regulatory scrutiny. The Securities and Exchange Board of India (SEBI) has issued an administrative warning letter to the bank, citing alleged non-compliance with regulatory guidelines for custodian activities.
Regulatory Action
According to an intimation filed by HDFC Bank with the stock exchanges on April 2, 2025, SEBI's warning letter alleges certain non-compliances related to the bank's custodian activities as per the SEBI (Custodian) Regulations, 1996. This action follows an inspection of the bank's custody activities undertaken by the market regulator.
Bank's Response
HDFC Bank has acknowledged the receipt of the warning letter and stated that it will take necessary steps to rectify the lapses mentioned in the communication. The bank assures that it is committed to addressing the issues highlighted by the regulator.
Impact Assessment
In its filing, HDFC Bank has indicated that this regulatory action is not expected to have any impact on its financial, operational, or other activities. The bank has not quantified any monetary impact resulting from this warning.
Pattern of Regulatory Concerns
This is not the first time HDFC Bank has faced regulatory scrutiny. The recent warning follows a similar incident in December 2024, where SEBI had issued a warning related to the bank's merchant banking activities. This pattern suggests increased regulatory attention on the bank's various financial services operations.
Conclusion
As HDFC Bank works to address these regulatory concerns, investors and stakeholders will likely keep a close eye on the bank's compliance measures and any potential impact on its diverse financial services offerings. The bank's prompt disclosure and commitment to rectifying the issues demonstrate its responsiveness to regulatory requirements in the dynamic Indian financial services landscape.
Historical Stock Returns for HDFC Bank
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+1.53% | +5.53% | +11.48% | +13.96% | +27.56% | +109.46% |