Investigation of Punjab National Bank continues – India (1 June)

The Securities and Exchange Board of India (Sebi) is currently considering penal action against Punjab National Bank and Gitanjali Gems after completion of its probe into suspected trading and disclosure related issues relating to over Rs 14,000 crore banking fraud, senior officials said. In May, SEBI issued a warning letter to PNB for delaying disclosures to stock exchanges about alleged fraudulent transactions relating to the use of Letters of Undertakings (LoUs) and Foreign Letters of Credit (LoC) in connivance with certain bank officials. According to Sebi's warning letter, there were delays of 1-6 days by PNB in making disclosures to the stock exchanges pertaining to the filing of complaints with the Reserve Bank of India (RBI) and CBI. This delay in informing the stock exchanges is a violation of the listing regulations. In a disclosure to the Stock Exchanges in May 2018, PNB have stated that the amount involved in the alleged fraud is now Rs 14,357 crore.  The Bank has posted its highest ever quarterly loss of Rs 13,416.9 crore in three months ended March 31, 2018.

Investigation of ICICI bank disclosures – India (26 May)

The Securities and Exchange Board of India has issued a show-cause notice to ICICI Bank and its chief executive officer Chanda Kochhar for alleged violation of disclosure requirements under securities law in the case involving Videocon Group and NuPower Renewables, a firm run by her husband Deepak Kochhar. 

Insider Trading Investigations – Fortis Healthcare, India (23 May)

The Securities and Exchange Board of India (Sebi) is currently  investigating insider trading allegations at Fortis Healthcare. In addition, the Serious Fraud Investigation Office and the Registrar of Companies are also investigating alleged financial irregularities. The investigations are reported as focusing upon promoters taking money out of the company without board approval.

Investigation of “sharp practices” by Nigerian Parliament (8 May)

Over 100 Nigerian Companies are being investigated by a House of Representatives sub-committee of the Capital Market on Regulation and Compliance. They are exploring “alleged sharp practices” within Public Limited Companies (PLCs) as a result of petitions by shareholders. In May 2018, over a 100 PLCs have been invited by the sub -committee to defend their operations.

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