Standard Chartered Bank settles SEBI case

Standard Chartered Bank (SCB) paid Rs. 4.97 crore to settle a case with the Securities and Exchange Board of India (Sebi) for alleged violation of regulatory norms involving CG Power and Industrial Solutions Ltd.

SCB had approached Sebi with a proposal to resolve a matter involving alleged Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) violations, without admitting or denying the findings of fact and conclusions of law, through a settlement order.

SEBI’s High Powered Advisory Committee agreed to settle the matter upon payment of Rs. 4.97 crore, which the bank did on 12 May. Following the order, Sebi said it will not initiate any enforcement action against the applicant for the defaults.

Sebi had in May 2021 issued a show-cause notice to the bank for alleged violations under PFUTP. SCB was alleged to have helped a private limited business controlled by promoter group firms at the expense of the publicly traded CG Power, thus harming the interests of its minority shareholders.