InvestorQ : Can you tell me about the recent case that Deepak Parekh of HDFC settled with SEBI by paying a penalty?
indhumathi Sayani made post

Can you tell me about the recent case that Deepak Parekh of HDFC settled with SEBI by paying a penalty?

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3 months ago
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Deepak Parekh, who has almost been synonymous with HDFC for nearly 4 decades, has settled a SEBI non-compliance issue with the markets regulator pertaining to an erstwhile listing agreement. Mr. Parekh settled the issue Rs.9.37 lakh towards consent settlement without admitting or denying the findings of fact and conclusions of law. This pertains to the ICD and an additional loan facility of Rs.875 crore to Gilders Buildcon.

The SEBI order had stated that the outstanding ICD was converted into a loan facility of ₹750 crore without any additional disbursement. At that point Parekh was chairman of HDFC and also a member of the committee approving the ICD/ loan. Additionally, he was also part of the advisory board of Piramal Group which paid him advisory fees. This, according to SEBI, was in violation of the code of conduct for Directors of HDFC.

In response to the notice, Mr. Deepak Parekh had filed an application proposing a settlement of the defaults without admitting or denying the findings of fact and conclusions of law in the case. The said amount has already been remitted by Deepak Parekh. The settlement is subject to certain terms and conditions. This includes a specific condition that the regulator will not initiate any enforcement action against the applicant for the default.

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