New Delhi, March 17 Standard Chartered Bank has settled with the capital markets regulator, Sebi, a case alleging violations of FPI rules and other regulatory norms, after paying Rs 57.20 lakh towards settlement charges.
Following the receipt of the settlement amount by Sebi, the adjudication proceedings initiated against Standard Chartered Bank, as per a Show Cause Notice (SCN) dated June 17, 2025, are hereby disposed of in accordance with the settlement regulations, the regulator said in its order passed on Tuesday.
In its show cause notice, Sebi alleged that Standard Chartered Bank acted as a designated depository participant (DDP) and failed to report to Sebi instances of delays exceeding six months in reporting material changes related to the beneficial ownership of certain Foreign Portfolio Investors (FPIs).
The bank delayed processing of changes in investor grouping and, in some cases, took up to 19 to 20 days to inform NSDL about the changes after receiving complete documents from the FPIs.
Standard Chartered Bank granted exemptions from granular disclosure requirements to certain beneficial owners of FPIs without ensuring compliance with the applicable regulatory framework, and also failed to exercise due diligence to ascertain the investor grouping of FPIs.
Subsequently, Sebi issued an SCN on June 17, 2025, against the applicant (Standard Chartered Bank) for the alleged violations of FPI rules and Depositories and Participants regulations.
Accordingly, the applicant filed a settlement application and proposed to settle the proceedings initiated against them "without admitting or denying" the findings of fact and conclusions of law.
Following discussions with Sebi's internal committee and consideration by the High Powered Advisory Committee (HPAC), the settlement terms were recommended and later approved by the panel of the regulator's Whole-time Members in January 2026.
After the applicant remitted the settlement amount, Sebi disposed of the adjudication proceedings through a settlement order passed on Tuesday.
However, Sebi clarified that it retains the right to reopen the case if representations made during the settlement process are found to be false or if the terms are breached.