HDFC Bank: Amid the controversy arising after the resignation of Atanu Chakraborty and questions being raised about corporate governance, the bank has appointed law firms for legal investigation and audit of the matter.

SEBI takes a tough stand on Atanu Chakraborty's resignation

HDFC Bank: The country's largest private bank, HDFC Bank, has been in the news for the past few days due to the resignation of its part-time chairman, Atanu Chakraborty. Now, a new update is emerging in this matter.

In fact, amid the controversy surrounding Atanu Chakraborty's resignation and the questions surrounding corporate governance, the bank has appointed two external law firms to review, legally investigate, and audit the resignation letter. Their task is to determine whether any ethical or regulatory violations occurred within the bank, as alleged by the former chairman.

SEBI adopts tough stance

Meanwhile, on March 23, market regulator SEBI Chairman Tuhin Kant Pandey issued a strong message to independent directors regarding Atanu Chakraborty's resignation. He said that independent directors should perform their roles with full responsibility and avoid making vague accusations without sufficient evidence.

SEBI stated that if an independent director believes that the company is not operating properly, lacks ethical practices, or has concerns about fraud, they should formally raise this issue during a board meeting, as ambiguity creates unnecessary panic and uncertainty in the market. SEBI stated that making serious allegations without any concrete evidence or records is not appropriate.

Big fall in shares

It should be noted that on March 18th, the bank's former chairman, Atanu Chakraborty, resigned from his post, citing ethical principles. This caused a stir in the market. Immediately after the news of his resignation, the bank's shares saw a sharp decline, falling 9% in a single day to ₹792. This resulted in a loss of approximately ₹1 lakh crore for investors.

Although the stock recovered later, it closed down nearly 5% on Monday at ₹743.75. During the trading session, the stock reached a 52-week low of ₹740.95, while its 52-week high is ₹1020.35.