The Securities and Exchange Board of India (SEBI) has issued a settlement order to Utkarsh Small Finance Bank, with the lender agreeing to pay a fine of Rs 1.24 crore to resolve alleged violations of certain provisions of the Listing Obligations and Disclosure Requirements (LODR) Regulations.

The regulatory action stems from a show-cause notice dated March 16, 2023, wherein SEBI had raised concerns regarding the bank's compliance with LODR Regulations. In response, Utkarsh Small Finance Bank filed a settlement application, prompting SEBI to dispose of both the application and the show-cause notice through the present settlement order.

The SEBI order states, "Therefore, in view of the acceptance of the settlement terms and the receipt of the settlement amount as above by SEBI, the instant adjudication proceedings initiated against the applicants vide SCN dated March 16, 2023, is disposed of in terms of Section 15JB of the SEBI Act read with Regulation 23(1) of the settlement regulations based on the settlement terms".

Notably, Utkarsh Small Finance Bank opted to settle the proceedings without admitting or denying the findings of facts and conclusions of law. The bank submitted a settlement application to SEBI, proposing revised settlement terms after attending a meeting with the internal committee of SEBI on January 16, 2024.

The High Powered Advisory Committee (HPAC) reviewed the proposed settlement terms and recommended resolving the case with the payment of Rs 1.24 crore by the bank as a settlement amount.

This settlement underscores the regulatory efforts to ensure compliance with market regulations while providing a mechanism for entities to address alleged violations through mutually agreed settlements. The resolution marks a step forward in maintaining transparency and integrity in the Indian financial markets.