DDP- Standard Chartered Bank Pays ₹57.20 Lakh To Settle SEBI Case about FPI Compliance Lapses
Moneylife Digital Team 17 March 2026
DDP- Standard Chartered Bank has settled a case with market regulator Securities and Exchange Board of India (SEBI) by paying ₹57.20 lakh, bringing to a close adjudication proceedings related to multiple alleged compliance lapses under foreign portfolio investor (FPI) regulations and depository participant norms.
 
The settlement order, issued by SEBI on 17 March 2026, pertains to proceedings initiated against Standard Chartered Bank in its capacity as a designated depository participant (DDP). The regulator had flagged several violations involving delays, inadequate disclosures and failure to exercise due diligence in handling FPI-related obligations.
 
According to SEBI, the Bank failed to report delays exceeding six months in intimating material changes in beneficial ownership of certain FPIs. It also delayed processing investor grouping changes, in some instances taking up to 19 days to 20 days to notify the National Securities Depository Ltd (NSDL) after receiving complete documentation.
 
Further, the regulator alleged that the Bank granted exemptions from granular disclosure requirements without ensuring adherence to the applicable regulatory framework. It was also found wanting in properly ascertaining FPI investor groupings, raising concerns about compliance oversight.
 
Following the issuance of a show-cause notice (SCN) in June 2025, Standard Chartered Bank filed a settlement application under SEBI Settlement Proceedings Regulations, 2018, without admitting or denying the findings. The internal committee(IC) of SEBI recommended a settlement amount of ₹57.20 lakh, which the Bank accepted as part of its revised settlement terms.
 
The proposal was subsequently approved by SEBI high-powered advisory committee (HPAC) and later by a panel of whole-time members (WTM). After the bank remitted the settlement amount in March 2026, SEBI disposed of the adjudication proceedings.
 
SEBI clarified that the settlement order does not preclude it from reopening the case or initiating fresh action if it finds that the bank failed to make full disclosures, violated undertakings, or if discrepancies emerge in the settlement process.
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