Standard Chartered Bank settles Sebi case over FPI lapses

ET BureauLast Updated: Mar 18, 2026, 06:24:00 AM IST

Synopsis

Standard Chartered Bank has settled a case with market regulator Sebi. The bank agreed to pay Rs 57 lakh for alleged lapses as a designated depository participant for foreign portfolio investors. Sebi found failures in monitoring FPI disclosures and reporting changes in beneficial ownership. Delays in processing investor grouping updates were also noted. The settlement resolves multiple compliance issues.

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.

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