Sebi, RBI in turf war over stock trading of HDFC Bank

The capital market regulator Sebi is unhappy with Reserve Bank of India’s intervention in the overseas trading of HDFC bank shares.

The capital market regulator Sebi is unhappy with Reserve Bank of India’s intervention in the overseas trading of HDFC bank shares. 
 
HDFC Bank is a favourite stock of foreign portfolio investors (FPIs), and the foreign investment cap of 74 per cent of its equity is typically fully utilised.
 
On February 17, FPIs’ limit of 74 per cent was breached in trades before the Reserve Bank of India (RBI) issued a circular banning further purchases in the counter.
 
 In a strongly worded letter, Sebi expressed its dismay over the conduct of RBI. "Market sanctity is important to Sebi. Even Sebi doesn't intervene during market hours. RBI can't do anything like this without consulting with Sebi," said a regulatory official aware of the letter, as quoted by ET. "This is backseat driving." 
 
Sebi, however, has called for a solution to be worked out by both regulators, so that this type of situation doesn’t happen again.
 
Following the letter, RBI and Sebi officials even held a meeting last week to discuss the issue, the official said.
 
Source: ET

Add new comment