The Securities and Exchange Board of India has issued administrative warning letters to three designated officials of Punjab National Bank and three of their immediate relatives over alleged breaches of insider trading norms. The state-run lender informed the stock exchanges of the regulatory communication on October 1, noting that the warning relates to share transactions conducted between June 24, 2024, and August 6, 2024, alongside any subsequent relevant period.
Regulatory scrutiny over share transactions
According to the regulatory filing by Punjab National Bank, the administrative warning letters were issued by SEBI’s Investigation Department on September 30, 2026, and were received by the bank the following day. The inquiry centres on transactions involving the bank’s securities carried out by designated persons and their family members during the specified window in 2024.
The action was initiated under the SEBI (Prohibition of Insider Trading) Regulations, 2015, which establish compliance frameworks to prevent dealings based on unpublished price-sensitive information. These statutory rules govern how listed entities and their designated personnel manage sensitive financial data, imposing strict trading conduct restrictions on both employees and their immediate relatives.
Cautionary notice with no financial penalties
In its disclosure, the public sector lender clarified that the communication from the market regulator is purely cautionary in nature. SEBI has not imposed any monetary or financial penalty on the bank in connection with the matter.
Punjab National Bank stated that it will initiate all necessary compliance measures to address the specific concerns highlighted by the regulator. The bank added that the administrative warning serves as an advisory directive regarding adherence to internal controls and market conduct standards.
Bank shares slide over three per cent
Following the regulatory disclosure, Punjab National Bank shares witnessed selling pressure during Thursday’s trading session. The bank’s stock settled at Rs 109.90 on the exchange, marking a decline of 3.09 per cent from its previous closing price of Rs 113.40.
The stock touched an intraday high of Rs 113.30 and a low of Rs 109.35, recording a volume-weighted average price of Rs 111.02 on a daily turnover of approximately Rs 7.47 crore. Punjab National Bank currently holds a market capitalisation of roughly Rs 1.26 lakh crore, with its 52-week trading range spanning from a low of Rs 98.50 to a high of Rs 135.15.
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