Standard Chartered Pays ₹57.2 Lakh to Settle SEBI Case on FPI Norms

Standard Chartered Bank has settled a case with Securities and Exchange Board of India (SEBI) over alleged violations of foreign portfolio investor (FPI) norms. As per the news reports, the bank paid ₹57.2 lakh under the settlement mechanism.  

The case relates to its role as a designated depository participant (DDP), responsible for compliance checks and reporting for FPIs.  

The settlement has been made without admission or denial of the findings. SEBI has closed the adjudication proceedings following the payment. 

Delays in Reporting Ownership Changes 

The regulator flagged delays in reporting material changes linked to beneficial ownership of certain FPIs. In some instances, the delay in intimation exceeded 6 months. 

Timely disclosure of such changes is required under FPI regulations to maintain transparency around ownership structures. The delays formed a key part of the case. 

Processing Gaps in Investor Grouping 

SEBI also noted delays in updating investor grouping details. In certain cases, the bank took 19 to 20 days to inform the National Securities Depository Ltd (NSDL) after receiving complete documents from FPIs. 

The regulator stated that such timelines were not in line with expected processing standards. It also pointed to gaps in verifying whether FPIs were correctly grouped. 

Issues Around Disclosure Exemptions 

The order highlighted that exemptions from granular disclosure requirements were granted to some beneficial owners. These were allowed without ensuring compliance with the applicable regulatory framework. 

Granular disclosures are used to track ultimate ownership and prevent opacity in foreign investment routes. The absence of proper checks was cited as a lapse. 

Proceedings and Outcome 

The case was initiated through a show-cause notice issued in April 2025. The bank later filed a settlement application, which was reviewed by SEBI’s advisory committee and approved by its whole-time members. 

The payment was made in early March 2026, after which the proceedings were disposed of. 

Read More: RBI Reviewing Complaint Against Standard Chartered Bank Over Discounted Asset Sales! 

Conclusion 

The order closes the matter, with provisions allowing SEBI to reopen action if required disclosures are found to be incomplete or inaccurate. 

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