NiMo scam: SEBI raps PNB for late disclosures

Mumbai, May 17 

Punjab National Bank on Thursday said SEBI has warned it for delay in disclosures to stock exchanges about the $2-billion fraudulent transactions allegedly carried out by Nirav Modi and Gitanjali Group.

Taking serious note of delay in making disclosures, SEBI has issued a warning letter to state-owned PNB — the country’s second largest lender.

The PNB was defrauded of over $2 billion allegedly by diamond trader Nirav Modi and his associates by fraudulent use of 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 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 RBI and CBI. — PTI