CitiCorp Investment Bank pays Rs 36 lakh to settle FPI rules violation case with Sebi

CitiCorp Investment Bank (Singapore) Ltd on Thursday settled with Sebi a case relating to issuance of offshore derivative instruments to Symmetry Master Fund Ltd without completing the KYC norms, on payment of Rs 36 lakh.

This came after CitiCorp filed a suo motu settlement application with Sebi proposing to settle the alleged violation of FPI (Foreign Portfolio Investors) rules, "by neither admitting nor denying the findings of fact and conclusions of law" under settlement rules.

Acknowledging the settlement, the markets regulator in its order on Thursday said "any proceedings that may be initiated for the violations ... Are settled in respect of the applicant".

It was alleged that the applicant issued an offshore derivative instrument (ODI) to Symmetry Master Fund Ltd on December 19, 2023 without complying with the Know Your Client (KYC) norms as required under the FPI Regulations.

The applicant mentioned that the onboarding and KYC checks with respect to the ODI subscriber --SMFL-- was completed on January 10, 2024.

There was also an alleged delay on the part of the applicant in depositing the regulatory fee collected from the subscriber of the ODI. The regulatory fee of USD 800 corresponding to the ODI issued to SMFL on December 19, 2023 should have been deposited immediately with Sebi by the applicant. Instead, it was deposited with Sebi on February 26, 2024 with a delay of 69 days.

These findings pointed to violations of FPI regulations.

As per another separate settlement order, BCL Industries and its promoter and MD Rajinder Mittal settled with Sebi a case of violation of regulatory norms on payment of settlement amount.

BCL Industries and Mittal remitted Rs 14.30 lakh and Rs 28.6 lakh respectively.

The two entities allegedly failed to disclose Manoj Finvest Private Ltd (MFPL) as part of the promoter group in terms of Sebi ICDR (Issue of Capital and Disclosure Requirements) rule.

Also, Mittal allegedly failed to cover MFPL under code of conduct of BCL to regulate, monitor and report trading by the designated persons and their immediate relatives under insider trading rules.

In another order, Green Lands Impact Fund and three others settled a matter related to alleged violations of Alternative Investment Funds (AIF) rules with Sebi after paying Rs 62.88 lakh as settlement amount.