CDSL And Citibank Settle Regulatory Violation Cases By Paying SEBI
CDSL And Citibank Settle Regulatory Violation Cases By Paying SEBI
They were accused of disregarding the operational framework for transactions in defaulted debt securities post-redemption date
The Central Depository Services Ltd (CDSL) and global lender Citibank N.A. have settled the cases of alleged violation of the Securities and Exchange Board of India (SEBI) norms.
CDSL and Citibank (Designated Depository Participant) paid Rs.1.3 crore and Rs.40.2 lakh, respectively, to SEBI towards settlement charges.
The orders came after the CDSL and Citibank filed applications proposing to settle the instant proceedings initiated against them. The two stated to SEBI "without admitting or denying the findings of facts and conclusions of the law."
Thus, on acceptance of the settlement terms and the receipt of the settlement amount, the adjudication proceedings initiated against the two entities (through 13 November 2023 and 09 February 2024 show-cause notices and February 9, 2024), respectively, were disposed of.
The regulator-initiated adjudication proceedings against Citibank for violating the provisions of the SEBI (Foreign Portfolio Investors) Regulations and code of conduct specified under SEBI (Depositories and Participants) Regulations.
The markets regulator alleged, "The Customer Acquisition Form appeared to have been regenerated by the implementation (IM) team and a team member copied or replicated the end-client's wet-ink signatures, without his knowledge.”
