Standard Chartered Bank Settles SEBI Proceedings, Pays ₹57.20 Lakh Over FPI Lapses

Standard Chartered Bank has settled adjudication proceedings with SEBI after paying Rs 57.20 lakh to resolve alleged lapses as a Designated Depository Participant relating to Foreign Portfolio Investors (FPIs).

SEBI's Adjudicating Officer Sudeep Mishra passed the settlement order, disposing of the proceedings in terms of SEBI Act, 1992 and SEBI (Settlement Proceedings) Regulations, 2018.

SEBI alleged that the bank failed to timely report material changes relating to beneficial ownership of FPIs, with delays exceeding six months in certain cases, and delayed processing of investor grouping changes.

It was also alleged that the bank granted exemptions from granular disclosure requirements to certain beneficial owners of FPIs without ensuring compliance and failed to exercise due diligence in identifying investor groupings.

A show cause notice was issued in June 2025, following which the bank filed a settlement application without admitting or denying the findings.

SEBI's Internal Committee recommended a settlement amount of ₹57.20 lakh, which was subsequently approved by the High Powered Advisory Committee and the Panel of Whole Time Members. The Bank remitted the settlement amount, following which SEBI disposed of the adjudication proceedings.

The regulator clarified that the settlement is without prejudice to its right to initiate proceedings in case of any breach or misrepresentation.