New Delhi, Dec 27 (PTI) SBI-SG Global Securities Services on Friday settled a case related to an alleged violation of FPI (foreign portfolio investors) rules and other regulatory norms with Sebi by paying Rs 29.25 lakh towards settlement charges.
SBI-SG Global Securities Services Pvt Ltd (applicant) is a Sebi-registered designated depository participant (DDP).
The order came after SBI-SG Global Securities Services submitted a settlement application, requesting for settlement of the adjudication proceedings under the Sebi's settlement regulations.
"In view of the acceptance and the compliance of the settlement terms by the applicant, the instant adjudication proceedings initiated against the applicant (SBI-SG Global Securities Services) vide show cause notice dated May 08, 2024, is disposed of in terms of the settlement regulations," Sebi's chief general manager and adjudicating officer N Hariharan said in the order.
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The Securities and Exchange Board of India (Sebi) had undertaken an inspection of the SBI-SG Global Securities Services for the period from April 2021 to March 2023.
Pursuant to the inspection findings, the markets watchdog found certain non-compliances with the FPI (Foreign Portfolio Investors) regulations, operational guidelines to FPIs, and DDPs under the rules.
Sebi found that noticee (SBI-SG Global Securities Services) had allegedly granted FPI registration to seven foreign portfolio investors without ascertaining whether such applicant was under common ownership or control to form an investor group with any other registered FPI.
The markets regulator also observed that the noticee allegedly did not process the surrender applications of seven FPIs within the stipulated timelines and did not maintain the true and fair records (electronic) for 13 FPIs in the NSDL portal, it added.
Thereafter, Sebi issued a show cause notice on May 8, 2024, against the SBI-SG Global Securities Services for the alleged violations.
Pursuant to receipt of the application, the applicant filed revised settlement terms, which were approved by Sebi's High Powered Advisory Committee (HPAC).
After remitting the settlement amount of Rs 29.25 lakh, SBI-SG Global Securities Services settled the matter with the regulator.
The order, however, does not affect Sebi's right to take action under the settlement norms, including the possibility of restoring or initiating proceedings related to the settlement order against the applicant.
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