SEBI has agreed to settle with Deutsche Bank AG, The Hongkong and Shanghai Banking Corporation Limited, HDFC Bank and Citi Bank N.A. in a case related to carrying out due diligence in processing FPI applications.

On perusing the registration database available on NSDL website, it was inter alia observed by SEBI that, as on October 5, 2021, there were certain registered FPIs from the province of Manitoba, who were otherwise ineligible for registration/renewal in terms of the extant SEBI (FPI) Regulations. SEBI inter alia observed that the banks had granted registration/renewal to FPIs which were ineligible as per the SEBI (FPI) Regulations, 2019.

Pending adjudication proceedings, the banks proposed to settle the instant proceedings initiated against them, without admitting or denying the findings of SEBI allegations.

Under the settlement agreement, Deutsche Bank AG has paid ₹11 lakh, HSBC has paid ₹10.87 lakh, HDFC has paid ₹9.18 lakh and Citi has paid ₹8.25 lakh. “In view of the acceptance of the settlement terms and the receipt of respective settlement amounts by SEBI, the instant Adjudication Proceedings initiated against the Noticees viz., Deutsche Bank AG., The Hongkong and Shanghai Banking Corporation Limited, HDFC Bank Limited and Citi Bank N.A., are hereby disposed of in terms of Section 15JB of the SEBI Act, 1992 read with Regulation 23(1) of Settlement Regulations,” SEBI order stated