SAT Stays SEBI Order against HDFC Bank in BMA Wealth Case
Moneylife Digital Team
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The Securities Appellate Tribunal (SAT) has stayed an order passed by market regulator Securities and Exchange Board of India (SEBI) against HDFC Bank Ltd in the BRH Wealth Kreators Ltd (BRH) (formerly BMA Wealth Creators Ltd) and BRH Commodities Private Ltd (formerly BMA Commodities Pvt Ltd) matter. Last month, SEBI had asked the lender to deposit Rs158.68 crore along with interest in an escrow account and pay a penalty of Rs1 crore in this case.
In an order, the SAT bench of justice Tarun Agarwala and justice MT Joshi pointed out that HDFC Bank is one of the largest private sector banks, and as per balance sheet it has assets of Rs16.54 lakh crore and, therefore, has sufficient financial strength and ability to furnish the amount as per the impugned order.
Read more about Relief for HDFC Bank as SAT stays Sebi directive on Rs 160 cr transfer on Business Standard. Matter pertains to BRH Wealth Kreators share-pledge fiasco; SAT cites lender s financial strength while asserting it won t run away or become insolvent
SAT stays Sebi s order against HDFC Bank in BRH Wealth Kreators case
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Last Updated: Feb 22, 2021, 07:29 PM IST
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Synopsis
Sebi had imposed the fine and also directed the bank on January 21 to transfer Rs 158.68 crore along with 7 per cent interest per annum into an escrow account till the issue of settlement of clients securities is reconciled.
ET Online The fact that the circulars have been violated or not and whether the securities have been rightly invoked by the appellant requires consideration, the tribunal said in an order dated February 19 while giving three weeks time to Sebi to file a reply.
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