Fino Payments Bank Settles Fraud Disclosure Case with SEBI
Fino Payments Bank resolved a case with SEBI over delayed fraud disclosures, paying Rs 5.88 lakh. The settlement followed SEBI's investigation into the bank's failure to report employee fraud accusations promptly, as required by regulatory standards, after receiving an investigative report from KPMG.
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- India
Fino Payments Bank has settled a regulatory case with SEBI, the Securities and Exchange Board of India, concerning its delayed disclosure of alleged internal fraud. The bank agreed to pay Rs 5.88 lakh in settlement of the allegations.
The case originated with a SEBI show-cause notice dated October 8, 2024, accusing Fino Payments Bank of not fully disclosing fraud incidents as mandated by the LODR Regulations. The incidents involved fraudulent schemes perpetrated by bank employees.
Despite receiving a comprehensive investigation report from KPMG on November 8, 2023, the bank reportedly failed to disclose necessary information within the stipulated 24-hour period and did not provide ongoing updates. The disclosure was expected by November 9, 2023, but was not duly executed.
(With inputs from agencies.)
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