Sebi warns Canara Bank

Market regulator SEBI on Wednesday warned state-owned Canara Bank against recurrence of late acceptance of applications in public issues where it is the banker.

Market regulator SEBI on Wednesday warned state-owned Canara Bank against recurrence of late acceptance of applications in public issues where it is the banker.

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In an investigation, SEBI found that there were numerous instances of late acceptance of applications by the share processing cell of Canara Bank in the public issue of Fine Agromatics Limited that had hit the capital market in 1995.

In fact, SEBI in its order said that the violations by the bank calls for a penalty but disposed of the case by only warning the bank.

"Canara Bank (Bankers to an issue) is hereby warned for the aforesaid violations committed by it," Securities and Exchange Board of India said.

The regulator said that the bankers to an issue has a prominent role to play in the public issue as it deals with the public in general.

"The bank should not lose focus on the statutory duties prescribed under the regulations while functioning as a banker to an issue," the order said adding Canara Bank being a public sector bank should have been all the more careful in its duties.

Fine Agromatics Limited had come out with a public issue of 30,00,000 equity shares of Rs 10 each for cash at par on November 27, 1995.