Standard Chartered Bank settles Sebi case over FPI lapses

Mumbai: Standard Chartered Bank has settled a case with market regulator Sebi over alleged lapses in its role as a designated depository participant (DDP) for foreign portfolio investors (FPIs). The lender agreed to pay '57 lakh as settlement charges.

The regulator had initiated adjudication proceedings against the bank over multiple compliance failures related to FPI monitoring and disclosure requirements. Sebi found that the bank had allegedly failed to report delays by certain FPIs in notifying material changes in beneficial ownership within the time frame. As a DDP, the bank is required to monitor FPI disclosures and inform the regulator if investors fail to report such changes for more than six months.

Sebi also flagged delays in processing investor grouping updates. It noted that the bank took 19-20 days to intimate the depository after receiving complete documentation from investors seeking changes in grouping structures.