JPMorgan settles FPI compliance breach with Sebi. The banking giant agreed to pay Rs 34 lakh to resolve violations involving foreign portfolio investor regulations. The case revealed significant compliance failures, including granting Category II FPI licenses to four UK-based firms that lacked proper Financial Conduct Authority registration. Following updated FPI rules in 2019, these same entities were reclassified as Category I FPIs without verifying their regulatory status, breaching stricter eligibility requirements. Additionally, JPMorgan delayed action on a material change involving an FPI after a merger, taking over a month to advise fresh registration and restrict trading despite being notified in November 2024. The settlement underscores regulatory scrutiny on foreign investor onboarding processes and highlights the importance of robust due diligence in financial markets.
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