Home / Business and Economy / JP Morgan Chase Pays $34.42 Lakh to Settle SEBI FPI Rule Violations
JP Morgan Chase Pays $34.42 Lakh to Settle SEBI FPI Rule Violations
21 Mar
Summary
- JP Morgan Chase paid Rs 34.42 lakh to settle SEBI case on FPI rule violations.
- SEBI found violations in FPI classification and delayed action on material changes.
- The settlement resolves proceedings without admitting or denying findings.
JP Morgan Chase Bank N.A. settled a case with the Securities and Exchange Board of India (SEBI) concerning alleged violations of Foreign Portfolio Investor (FPI) rules. The multinational bank paid Rs 34.42 lakh as settlement charges. The settlement order, issued on March 21, 2026, allows the bank to resolve potential proceedings without admitting or denying SEBI's findings.
SEBI's investigation revealed that JP Morgan Chase had granted Category II licenses to four FPIs from the UK that lacked registration with the Financial Conduct Authority (FCA). Following the 2019 FPI Regulations, these entities were re-categorized as Category I without adequate verification. Additionally, the bank was found to have delayed acting on a material change notification regarding an FPI merger.
The bank's failure to promptly advise fresh registration after being informed on November 1, 2024, led to 38 days of continued transactions by the affected FPI. During this period, 64 purchase transactions were undertaken. SEBI deemed this delay a non-compliance with rules regarding reassessment of eligibility and handling of material changes.
