New Delhi, Jun 14 (PTI) Capital Small Finance Bank has settled with Sebi a case pertaining to alleged violations of regulatory norms during allotment of its equity shares after paying Rs 5.8 lakh towards settlement charges.

The order came after the bank proposed to settle the alleged violations through a settlement order.

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"The proceedings that may have been initiated for the alleged defaults ... are settled qua the applicant (Capital Small Finance Bank)," Sebi said in a settlement order passed on Friday, adding that it will not initiate enforcement action against the applicant for the default.

Capital Small Finance Bank had made allotment of its equity shares to 402 persons on 14 occasions in tranches from May 2004 to March 2005. The allotment was allegedly in violation of the Companies Act, and Sebi's DIP (Disclosure and Investor Protection) Guidelines, the order mentioned.

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Also, the applicant had filed a compounding application for violation of the Companies Act with National Companies Law Tribunal (NCLT), which had imposed a penalty in November 2021 and the application was accordingly disposed of, it added.

Pursuant to receipt of the application, Sebi's committee recommended the case for settlement upon payment of Rs 5.8 lakh, which was remitted by Capital Small Finance Bank and accordingly settled the matter with the regulator.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)