Technoglitch
Core Member
As a multi-agency probe continues in the alleged forex-based black money case involving thousands of crores of rupees, the Securities and Exchange Board of India (Sebi) and stock exchanges have now begun a scrutiny of several banks for any violation of the disclosure norms for listed firms.
State-run Bank of Baroda and Oriental Bank of Commerce are among those facing the scrutiny, while stock exchanges have also sought clarifications from top private sector lenders HDFC Bank and Axis Bank.
A senior official said Sebi will take a decision on a formal probe after scrutiny of their replies to the notices issued by the stock exchanges, but prima facie the market regulator is of the view that the disclosure norms required banks to inform the shareholders as and when they came to know about the alleged lapses on part of some staff members.
On the other hand, banks are of the view that they did not make the disclosure to the stock exchanges as the financial losses appeared to be 'nil or insignificant' at that point of time and the public disclosure of those cases could have adversely impacted the outcome of international probes.
The matter relates to alleged illegal money transfers over several years to Hong Kong and possibly other foreign locations, which were passed off as payments for non-existent imports, that came to light only this month.
Forex Scam: Banks Face Sebi Scrutiny for Disclosure Lapses, Says Report - NDTVProfit.com
State-run Bank of Baroda and Oriental Bank of Commerce are among those facing the scrutiny, while stock exchanges have also sought clarifications from top private sector lenders HDFC Bank and Axis Bank.
A senior official said Sebi will take a decision on a formal probe after scrutiny of their replies to the notices issued by the stock exchanges, but prima facie the market regulator is of the view that the disclosure norms required banks to inform the shareholders as and when they came to know about the alleged lapses on part of some staff members.
On the other hand, banks are of the view that they did not make the disclosure to the stock exchanges as the financial losses appeared to be 'nil or insignificant' at that point of time and the public disclosure of those cases could have adversely impacted the outcome of international probes.
The matter relates to alleged illegal money transfers over several years to Hong Kong and possibly other foreign locations, which were passed off as payments for non-existent imports, that came to light only this month.
Forex Scam: Banks Face Sebi Scrutiny for Disclosure Lapses, Says Report - NDTVProfit.com
