Tamilnad Mercantile Bank controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile4 entries
2021
Fines relating to unauthorized foreign share transfers
Directors of the bank were fined in two actions, reported as ₹11.33 crore and ₹5.33 crore, after transfers of shares to several foreign entities were authorized without the Reserve Bank of India's approval for those entities to acquire shares in the bank.
2021
RBI fines Tamilnad Mercantile Bank
Fine or penalty
The Reserve Bank of India imposed a Rs 1 crore penalty on Tamilnad Mercantile Bank for non-compliance with provisions of its directions on the Cyber Security Framework in Banks.
Source excerpt
In another statement, the RBI said it has imposed penalty of Rs 1 crore on Tamilnad Mercantile Bank for non-compliance with certain provisions of directions issued by it on Cyber Security Framework in Banks.
2020
Standard Chartered fined in India over foreign-exchange violations
Fine or penalty
India's anti-money laundering agency fined Standard Chartered 1 billion rupees for foreign-exchange rule violations connected to its work on the 2007 takeover of Tamilnad Mercantile Bank. The bank confirmed receipt of the order and said it was evaluating it.
India’s anti-money laundering agency fined Standard Chartered 1 billion rupees for foreign-exchange rule violations connected to its work on the 2007 takeover of Tamilnad Mercantile Bank. The bank confirmed receipt of the order and said it was evaluating it.
Company response
Ongoing disclosure — Standard Chartered
A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further.
Ongoing disclosure — Standard Chartered Plc
A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further.
Source excerpt
A representative for the British lender confirmed receipt of the order, adding that the bank was evaluating it and so unable to comment further.
An eight-year probe found that Standard Chartered violated the so-called foreign exchange management act -- which monitors offshore financial transactions -- when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank Ltd. in 2007, according to an August order from India’s enforcement agency that was seen by Bloomberg.
An eight-year probe found that Standard Chartered violated the so-called Foreign Exchange Management Act - which monitors offshore financial transactions - when it worked with a group of investors to buy a stake in Tamilnad Mercantile Bank Ltd. in 2007, according to an August order from India's enforcement agency that was seen by Bloomberg.
2020
ED imposes penalties on Standard Chartered Bank and Tamilnad Mercantile Bank
Fine or penalty
India's Enforcement Directorate said its Adjudicating Authority fined Standard Chartered Bank Rs 100 crore and Tamilnad Mercantile Bank Rs 17 crore under the Foreign Exchange Management Act. According to the report, Standard Chartered was held guilty of contraventions involving an escrow account, deposits and shares, while TMB was penalized over recording share transfers without the required approvals.
India’s Enforcement Directorate said its Adjudicating Authority fined Standard Chartered Bank Rs 100 crore and Tamilnad Mercantile Bank Rs 17 crore under the Foreign Exchange Management Act. The report says Standard Chartered was held guilty of contraventions involving an escrow account, deposits and shares, while TMB was penalized over recording share transfers without the required approvals.
Source excerpt
In his adjudication order, the Special Director, ED, Southern Region, imposed a penalty of Rs 11.33 crore on TMB for recording in its books the transfer of 46,862 shares of the bank in the names of seven foreign entities
The Standard Chartered Bank was held guilty of contravening FEMA for opening the Standard Chartered Bank Project Windmill (Sale Consideration) Escrow Account without RBI's prior permission and for allowing deposits of Rs 113 crore and for having held 1,12,151 shares of TMB in the said escrow account..The Standard Chartered Bank was levied a penalty of Rs 34 crore for the above contraventions..Another Rs 66 crore penalty was levied on the Standard Chartered Bank for providing collateral/guarantee taking into custody of TMB shares and original sale deeds of land in lieu of which Standard Chartered Bank, Mauritius, granted a loan of $55.40 million (equivalent to Rs 221 crore) to three foreign entities -- Katra Holdings Limited, Mauritius, RST Limited, Cayman Islands, and GHI I Limited, Cayman Islands, without any special permission from the RBI.
The Enforcement Directorate (ED) said on Friday that the Standard Chartered Bank has been fined Rs 100 crore by its Adjudicating Authority under the Foreign Exchange Management Act, 1999 (FEMA)..The Adjudicating Authority has also fined Tamilnad Mercantile Bank (TMB) Rs 17 crore