Spanish market regulator Comisión Nacional del Mercado de Valores (CNMV) has imposed an €16.9m ($23.2m) penalty on Banco Santander for misselling of convertible bonds.

The regulator alleged that the banking group, which sold €7bn of bonds in 2007, broke two serious violations by not providing clients required information about a bond that would certainly convert into its own stock.

The bonds, known as Valores Santander, had a conversion price of €12.96, and has been was paying a 4.8% fixed return until it was converted into shares of the bank in 2012.

In a statement, Banco Santander said that the bond sale had CNMV approval and it will appeal against the penalty.

Several global banks currently have court cases over misselling of products during the peak financial crisis.

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