Companies

Deepak Parekh settles case with SEBI by paying ₹9.37 lakh

Our Bureau Mumbai | Updated on February 05, 2021

Deepak Parekh, Chairman, HDFC Ltd, has settled a case pertaining to certain error with regard to the bank’s code of conduct and listing agreement of the stock exchanges. Parekh settled the case, full details of which were not disclosed by SEBI, by paying ₹ 9.37 lakh without admission or denial of guilt.

SEBI’s order does not disclose specific clauses of the code of conduct.

SEBI said the matter pertains to an Inter-Corporate Deposit (ICD) advanced by HDFC Ltd to Gliders Buildcon Realtors Pvt Ltd, a group company of Piramal Realty Pvt Ltd.

According to an examination by SEBI, apart from the ICD, an additional loan facility of ₹875 crore was approved to Gilders Buildcon in December 2014. Based on a request from Gliders Buildcon, the outstanding ICD was converted into a loan facility of ₹750 crore without any additional disbursement.

Parekh was HDFC Ltd Chairman and a member of the committee which approved the ICD/ loan. He was also part of the advisory board of Piramal Group, including Piramal Realty, for which he received fees for advisory services given to the group for the calendar years 2011 to 2015 and financial years 2017 and 2018, as per a Sebi order.

SEBI said HDFC Ltd has adopted a Code of Conduct for all its directors and senior management personnel as per the erstwhile listing agreement.

“However, Parekh failed to comply with the Code of Conduct of HDFC Ltd, resulting in violation of the erstwhile listing agreement,” SEBI said.

In view of the non-compliance, SEBI issued a ‘Summary Settlement Notice’ on December 4, 2020 to Parekh intimating that the proceedings (to be initiated), may be settled and disposed of upon filing of a settlement application along with remittance of ₹ 37,500 to SEBI within 30 calendar days of receiving the notice.

Published on February 05, 2021

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