Last year on October 8, Sebi issued a show cause notice to the bank alleging that it failed to make timely and complete disclosure of a material event regarding frauds perpetrated by its employees.
Sebi observed that, 15 complaints were received alleging fraudulent investment schemes by employees of the bank and the value of the event exceeded materiality thresholds under its rules.
The share price of the company declined significantly during the relevant period, reflecting material impact, it said.
“Despite receiving KPMG’s investigation report on November 08, 2023, the Fino failed to make adequate disclosure within 24 hours and did not provide subsequent updates as mandated. The event should have been disclosed by the company latest by November 9, 2023, carrying all the details required under Sebi circular…” Sebi said in an order on Monday.
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