Fino Bank Settles Disclosure Case with Sebi

New Delhi, Oct 6 (PTI) Fino Payments Bank on Monday settled a case pertaining to failure to make timely and complete disclosure regarding frauds perpetrated by its employees with markets regulator Sebi after paying Rs 5.88 lakh.

The order came after the bank filed a settlement application with the Securities and Exchange Board of India (Sebi) proposing to settle the alleged violations "without admission or denial of findings of fact and conclusions of law", through a settlement order.


The applicant remitted the settlement amount and accordingly, "the instant adjudication proceedings initiated against Fino Payments Bank Ltd vide SCN (show cause notice) dated October 8, 2024, are hereby disposed of," Sebi said in its order.

In its show cause notice, Sebi alleged that Fino Payments Bank failed to make timely and complete disclosure of a material event regarding fraud perpetrated by its employees, as required under the LODR (Listing Obligations and Disclosure Requirements) Regulations.

It was observed that 15 complaints were received alleging fraudulent investment schemes by employees of the bank. Despite receiving KPMG's investigation report on November 8, 2023, the bank 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 by November 9, 2023, carrying all the details.