Market regulator Sebi pulls up PNB for late disclosures about mammoth Nirav Modi fraud
Taking serious note of delay in making disclosures, markets regulator Sebi has warned PNB to promptly comply with mandatory norms on fraudulent transactions related to Nirav Modi and Gitanjali Group of companies
Mumbai: Taking serious note of delay in making disclosures, markets regulator Sebi has warned PNB to promptly comply with mandatory norms on fraudulent transactions related to Nirav Modi and Gitanjali Group of companies.
The PNB was defrauded of over $2 billion allegedly by diamond trader Nirav Modii and his associates by fraudulent use of Letters of Undertakings (LoUs) and Foreign Letters of Credit (LoC) in connivance with certain bank officials.
"The...non-compliances are viewed seriously and PNB is hereby warned and advised to be cautious in future to ensure compliance with all applicable provisions of the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations," Sebi said in a communication to the bank.
The Sebi's warning letter has been posted by the bank on stock exchanges as part of regulatory filing.
Sebi observed that there were delays of 1-6 days by PNB in making disclosures to the stock exchanges pertaining to the filing of reports/complaints with Reserve Bank of India and CBI.
Accordingly, PNB has not complied with various norms.
The Sebi's communication refers to various disclosures made by PNB to stock exchanges during February and March this year regarding certain fraudulent transactions with respect to Nirav Modi group, Gitanjali group and others and referring of the same to law enforcement agencies.
Inter Scheme Transfer trades are excluded from the revised framework, Sebi said in a circular. The new norms will come into effect from 1 December, 2021
The allegations were made by Richard Levin, the court appointed trustee of three US corporations indirectly owned by Nirav Modi previously