Canara Bank Stock News BSE, NSE: State-run lender Canara Bank said on Monday that its subsidiary, Canara HSBC Life Insurance Company, had received a communication from capital market regulator SEBI with final observations for filing an updated red herring prospectus.
The PSU Bank informed the stock exchanges about the SEBI communication after the market hours on Monday.
Earlier on Monday, Canara Bank shares ended 1.4 per cent higher at Rs 112.5 apiece on BSE.
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Canara Bank aims to dilute its stake in Canara HSBC Life Insurance by listing the subsidiary’s stock on exchanges through an IPO.
What are SEBI’s final observations for an updated draft red herring prospectus (UDRHP)?
SEBI issues final observations for an UDRHP reviewing draft papers filed by an IPO-ambitious company. The regulator’s final observations direct a company to align its filing with regulatory requirements, touching upon aspects such as financial reporting, risk factors, management details and legal compliances.
Typically, the market regulator’s communication requires the company to clarify, update or add information in its prospectus. This is part of a standard procedure aimed at protecting the interests of investors while maintaining transparency.
This review follows the submission of an initial DRHP by the company and precedes regulatory approval for it to proceed with the RHP and final offer document.
A company receiving such communication from SEBI is required to file updated papers — known as updated draft red herring prospecturs (UDRHP) addressing the issues highlighted by the regulator.
SEBI’s observations help improve the quality of disclosures and reduce information asymmetry between the company and investors.
It plays a key role in market integrity and investor protection.
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Canara Bank makes annual interest payment on bonds
Separately, Canara Bank said it made interest payments on its “non-convertible, taxable, perpetual, subordinated and fully paid-up” unsecured Basel III-compliant Tier 1 bonds on Monday.
The annual interest amount stood at Rs. 159.8 crore, credited to the bondholder’s bank accounts.
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