SEBI warns PNB over late disclosure of Nirav Modi fraud case

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 Mumbai, May 17 : Securities market regulator Securities and Exchange Board of India (SEBI) has warned state-owned Punjab National Bank (PNB) over the delay in regulatory disclosures to stock exchanges with regard to the Nirav Modi fraud case.

According to a BSE filing on Thursday, PNB said that it has received a letter from SEBI on Tuesday “regarding disclosures made in respect of Nirav Modi Group, Gitanjali Group and others, has warned and advised to be cautious in future in respect of compliances of SEBI LODR Regulations”. 

The SEBI letter stated: “There are delays of 1-6 days by PNB in making disclosures to the stock exchanges pertaining to filing of the reports or complaints with RBI and CBI.”

“PNB has not made any provision or disclosure with respect to fraud of Rs 280 crore in the financial statements for the quarter ended December 2017 and thereby not complied….”

The state-owned lender had made various disclosures to stock exchanges during the months of February and March 2018 regarding certain fraudulent transactions with respect to the Nirav Modi group, Gitanjali group and others and referring of the same to law enforcement agencies. 

On its part, SEBI “examined various events and disclosures by PNB to the stock exchanges from the point of appropriate disclosures to be made and other requirements to be complied with under” its “Listing Obligations and Disclosure
Requirements Regulations, 2015″. 

In February 2018, PNB reported the Rs 13,000 crore fraud committed by the accused diamantaire Nirav Modi and his uncle Mehul Choksi — both of whom are on the run.