HDFC Bank has informed stock exchanges about the occurrence of an inadvertent trade by a designated person during a restricted period.
HDFC Bank in its regulatory filing revealed that Jimmy Tata, Chief Credit Officer of the Bank had sold 1,400 equity shares of the Bank.
The stake sale by Tata was notified to the Audit Committee of the Bank.
HDFC Bank said, "Based on Tata’s submission, the Audit Committee has concluded that this was an inadvertent trade made without intent to violate the Bank’s Share Dealing Code (‘Bank’s Code’) or the SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’)."
However, the committee determined that there was a violation of the Bank’s Code and PIT Regulations and has therefore imposed a penalty of Rs10.20 lakh on Tata, which amount shall be remitted to the Investor Protection & Education Fund (‘IPEF’) in line with the PIT Regulations.
At around 11.08 am, HDFC Bank was trading at Rs1493.10 per piece up Rs26.75 or 1.82% on Sensex. The stock has hit a new 52-week high of Rs1,503 per piece.
At the current market price, HDFC Bank's market valuation stands over Rs8.22 lakh cr.
Investors are upbeat on HDFC Bank's stock after the lender announced a strong financial quarter ending December 2020 (Q3FY21).