HDFC Bank asked to put Rs 159 cr in escrow a/c

MUMBAI: HDFC Bank said Sebi has asked it to deposit Rs 158.68 crore along with interest in an escrow account with regard to BRH Wealth Kreators case.

On Thursday, Sebi imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stock broker BRH Wealth Kreators in violation of the regulator's interim directions. The lender was also asked to deposit money in an escrow account.

The instant proceedings have essentially arisen on account of non-conformity by HDFC Bank with the directions contained in the interim order issued by Sebi against BRH Wealth Kreators and other entities on October 7, 2019,.

"The bank has been directed... to transfer an amount of Rs 158.68 crore along with interest from October 14, 2019 till date, calculated at the rate of 7% per annum to an interest bearing escrow account in any nationalised bank, by marking a lien in favour of Sebi, until the issue of settlement of clients' securities is reconciled," it said.