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South Indian Bank Receives NSE Warning for Disclosure Error

The South Indian Bank Limited recently received a warning letter from the National Stock Exchange of India (NSE) due to a disclosure error related to a prior Board meeting announcement. The bank has acknowledged the mistake and has taken corrective measures to prevent such occurrences in the future.

Disclosure Error and Warning from NSE

The South Indian Bank Limited made an error in a prior announcement regarding its Board meeting scheduled on July 18, 2024. The mistake involved the incorrect inclusion of Regulation 29(1)(e) under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which led to a misunderstanding that the proposal for dividend declaration would be discussed during the meeting.

• Incorrect Disclosure: The bank's announcement on July 08, 2024, erroneously mentioned Regulation 29(1)(e), suggesting that a proposal for dividend declaration would be discussed in the upcoming Board meeting.
• NSE's Response: Following the Board meeting on July 18, 2024, where no such discussion on dividend declaration took place, the NSE sought clarification from the bank. Upon receiving the explanation, the NSE issued a warning letter on August 13, 2024.

NSE's Warning and Advice

The NSE's warning letter highlighted the violation of Regulation 4(1)(c) and 4(1)(d) of SEBI LODR, which emphasize the importance of providing accurate and timely information to stock exchanges and investors.

• Regulation 4(1)(c): Listed entities must refrain from misrepresentation and ensure that information provided to stock exchanges is not misleading.
• Regulation 4(1)(d): Listed entities must provide adequate and timely information to stock exchanges and investors.

The warning letter advised The South Indian Bank to exercise greater caution and due diligence in future disclosures. The NSE also warned that any repetition of such a violation would be met with serious consequences.

Bank's Corrective Measures

In response to the NSE's warning, The South Indian Bank has implemented additional checks to prevent similar errors in future disclosures.