Standard Chartered Bank has settled a case with the Securities and Exchange Board of India (Sebi) on alleged violation of foreign portfolio investor (FPI) norms. The bank paid ₹57.2 lakh without admission or denial of findings of the regulator. The matter is related to various allegations raised by Sebi, where the lender had acted as a designated depository participant and failed to make timely disclosures about material changes in beneficial ownership of certain FPIs.
Standard Chartered Bank also delayed processing investor grouping changes to the National Securities Depository, in certain cases 19-20 days, even after receiving complete documents from FPIs, as per Sebi’s settlement order released on Tuesday.
Allegations against Standard Chartered Bank
The regulator also alleged that the bank exempted granular disclosure requirements to certain beneficial owners of FPIs, failing to comply with regulatory frameworks.
A series of norms were violated under the FPI Regulations 2019, Depositories and Participants Regulations 2018, and certain clauses of Sebi’s master circular.
The regulator had initiated the settlement proceedings after the bank submitted an application for the same. This proposal was accepted by Sebi’s high-powered advisory committee in December and then by a panel of whole-time members in January. The markets regulator disposed of the adjudication proceedings after Standard Chartered Bank remitted the settlement in early March.
The order was passed without prejudice to Sebi’s rights to initiate appropriate actions against the bank if it is found that the lender had not made full and true disclosure, violated undertakings or waivers, or there was a discrepancy while arriving at the settlement terms.