New Delhi, Jan 14: The Securities and Exchange Board of India (SEBI) has issued an administrative warning to Jammu & Kashmir Bank for failing to comply with regulatory norms concerning the timely disclosure of its Managing Director (MD) and Chief Executive Officer (CEO) appointment.
According to SEBI’s communication, the bank delayed its disclosure by 1 hour and 40 minutes beyond the 24-hour timeframe required by regulation. The event in question pertained to the Reserve Bank of India’s (RBI) approval for the appointment of Amitava Chatterjee as MD and CEO, which occurred on December 24, 2024, at 3:14 PM. However, the bank disclosed the information only on December 25, 2024, at 4:53 PM, during a trading holiday.
The delay was particularly concerning given the significance of the event. SEBI noted a surge in both the price and trading volume of the bank’s shares between December 24, 2024, and the next trading day, December 26, 2024. This heightened activity underscored the criticality of timely and transparent disclosures to ensure market integrity.
The appointment of Amitava Chatterjee as MD and CEO was approved for a three-year term effective from December 30, 2024. SEBI emphasized the gravity of such violations, particularly when they pertain to key events that could influence market movements.
In its letter, SEBI advised the bank to enhance its compliance mechanisms and warned against the recurrence of similar lapses in the future. “You are advised to be careful in the future and improve your compliance standards to avoid recurrence of such instances, failing which appropriate enforcement action would be initiated in accordance with the provisions of the SEBI Act, 1992, and related rules and regulations,” the letter stated.