Leading depository Central Depository Services (India) Limited (CDSL) and global lender Citibank N.A. have settled their regulatory disputes with the Securities and Exchange Board of India (SEBI) by paying settlement charges. This decision allows them to address concerns related to alleged regulatory violations without a formal admission of guilt. CDSL paid Rs 1.3 crore, while Citibank N.A. settled its case with a payment of Rs 40.2 lakh.
CDSL was scrutinized for alleged violations concerning the operational framework for transactions involving defaulted debt securities past their maturity or redemption dates. Citibank N.A. faced allegations related to breaches of Foreign Portfolio Investors (FPI) rules and improper handling of Customer Acquisition Forms, including unauthorized replication of client signatures.
The settlements followed applications filed by both entities proposing to resolve the issues “without admitting or denying the findings of facts and conclusions of law.” This approach helps them avoid extended litigation while addressing SEBI’s concerns.
SEBI’s orders confirm that the adjudication proceedings against CDSL and Citibank N.A. are now closed, following the receipt of the settlement amounts. The proceedings were initiated through show cause notices dated November 13, 2023, for CDSL, and February 9, 2024, for Citibank N.A.