RBI allows HDFC Bank to set up new branches, ATMs

25 Nov 2006

1

Mumbai: Following market regulator SEBI's decision to allow HDFC Bank, one of the eight depository participants (DPS) in the IPO scam, to open new demat accounts, the RBI has granted permission to the bank for setting up additional branches and ATMs.

In a filing with the Bombay Stock Exchange (BSE), HDFC Bank said it had received RBI's approval for establishing new branches and off-site ATMs. It has also been permitted by the SEBI to open new demat accounts, the bank added.

Nearly seven months after the market regulator banned 12 DPS, including HDFC Bank, from opening fresh demat accounts for their involvement in the major scam in public offers during 2003-05, SEBI had on November 23 passed a disgorgement order asking depositories NSDL, CDSL and eight DPS to cough up Rs115.81 crore for their involvement in this scam.

Also, the regulator said in a statement that all issues and contentions of the order have been left open to be considered by the enquiry officer and to be decided in subsequent proceedings pursuant to his report.

In the course of investigation of IPO scam and the submissions made by HDFC Bank, the market regulator did not agree with the contention of HDFC on grounds that there was no bar in opening of multiple demat accounts.

It pointed out to the observations of NSDL and CDSL regarding large scale opening of demat accounts with common address - 10,213 demat accounts on NSDL and 787 on CSDL.

HDFC Bank had earlier been barred from opening new branches and demat accounts as it did not show the required alertness in preventing unscrupulous investors corner major portion of IPOs by opening multiple demat accounts in fictitious names.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more