On Thursday, The Enforcement Directorate (ED) issued a notices to Tamilnadu Mercantile Bank (TMB) and Standard Chartered Bank for contravention of Foreign Exchange Management Act (FEMA) in the transfer of TMB shares. The violation by the two banks is put at Rs.608.35 crore.
The Reserve Bank of India (RBI) suspected violation of FEMA and referred the matter to ED. During investigations, the ED found TMB, its chairman, directors and company secretary contravened the provisions of FEMA in transferring 46,862 shares of the bank to foreign entities without RBI’s prior approval. The total value of the contravention is put at Rs.274.03 crore.
