3 min readMar 26, 2026 09:01 PM IST
The Securities and Exchange Board of India (SEBI) has started a review of the resignation of former part-time chairman of HDFC Bank, Atanu Chakraborty, probing any potential violations of regulations governing directors of listed companies.
Chakraborty had resigned from the bank’s board last week citing concerns about ethics and values. “This is a preliminary inquiry by the regulator to determine if any violation occurred. The aim is to thoroughly examine the claims made in the (Chakraborty’s) resignation letter,” said a source.
The mails sent to SEBI and HDFC Bank seeking response on the issue did not elicit any response.
In an exchange filing earlier this week, the bank said, “we wish to inform you that Chakraborty did not mention any happenings and practices which were not in congruence with his personal values and ethics.”
SEBI Chairman had recently highlighted the critical responsibility of independent directors to uphold ethical standards and refrain from making “insinuations”. “Independent directors are expected to act responsibly,” Pandey told reporters on Monday, when asked about Chakraborty’s exit.
Pandey said the market regulator will be investigating all the aspects of the matter and look to bring out all facts.
Chakraborty, in a letter to the Chairman of Governance, Nomination, Remuneration Committee of the HDFC Bank had said, “Certain happenings and practices within the bank, that I have observed over the last two years, are not in congruence with my personal values and ethics. This is the basis of my aforementioned decision.”
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The Reserve Bank of India (RBI) had appointed Keki Mistry as the interim part-time Chairman of HDFC Bank with effect from March 19, for a period of three months. Mistry was the Vice-Chairman of HDFC Ltd before its merger with HDFC Bank.
A day after Chakraborty’s exit, Mistry said on a call with analysts that there was no power struggle within the bank, and no discussion regarding governance within the board of directors had taken place. Saying that the board is united, Mistry said it had not witnessed “any kind of complete difference in opinion” in its meetings. “And as far as our seeking some explanation from Chakraborty goes, the board will of course meet very soon and take a call on how to deal with the problem,” he had said.
Last week, the RBI clarified it has not identified “any material concerns” regarding the conduct or governance of HDFC Bank. The banking regulator said it will continue to engage with the board and management going forward.
The HDFC Bank on Tuesday announced that the board of directors had appointed external law firms — domestic and international — to review Chakraborty’s resignation letter.
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