Market regulator the Securities and Exchange Board of India (Sebi) has freed Development Credit Bank (DCB) from penal actions relating to violation of various laws on payment of Rs 3.5 lakh settlement charges.
A high-powered advisory committee appointed by the Sebi has recommended the case for settlement on the payment of the above amount, the regulator said in an order issued today.
"This consent order disposes of the said adjudication proceedings initiated against the noticee (DCB) under the Sebi Act of 1992...This consent order is passed on March 2, 2010 and shall come into force immediately," the Sebi said.
On October 14, DCB had refuted the charges levelled against it in its reply to a Sebi show-cause. Later the bank filed for a consent proposing Rs 3.5 lakh towards settlement charges. Subsequently, the terms of consent was considered and recommended for settlement.
Set up in the 1930s, DCB is promoted by the Aga Khan Fund for Economic Development, which holds over 23 per cent stake in the bank. The bank has around 80 branches across 10 states and two Union Territories.