Standard Chartered Bank Resolves FPI Rule Violation Case with SEBI

Standard Chartered Bank resolved a regulatory violation case with SEBI by paying Rs 57.20 lakh. The case involved breaches of FPI rules and delays in reporting beneficial ownership changes. The settlement was approved by SEBI's advisory committees, but SEBI reserves the right to reopen the case if agreements are breached.

Standard Chartered Bank has reached a settlement with the Securities and Exchange Board of India (SEBI) concerning allegations of violations pertaining to Foreign Portfolio Investor (FPI) rules. These charges involved significant reporting delays on beneficial ownership changes and other regulatory infractions.

After payment of Rs 57.20 lakh, SEBI concluded the adjudication proceedings initially set into motion with a Show Cause Notice dated June 17, 2025. SEBI alleged that Standard Chartered, acting as a Designated Depository Participant (DDP), delayed over six months in reporting changes related to FPIs and took up to 20 days to process them.

This agreement follows deliberations with SEBI's internal committee and was later confirmed by the High Powered Advisory Committee (HPAC). While SEBI closed the case, it reserved the right to reopen investigations if any misrepresentations were discovered or terms violated.