Chennai: Citibank N.A. has settled a case with markets regulator SEBI regarding the bank’s alleged failure to adequately supervise an employee who carried out an unregistered portfolio investment scheme.
The case has been settled after payment of Rs 4.5 crore towards settlement charges, according to a SEBI order.
In April 2015, the regulator issued a show cause notice to the bank for alleged violation of portfolio managers norms with respect to one relationship manager.
As per the notice, Shivraj Puri had received signatures on blank fund transfer forms, which were used for transferring funds from the accounts of such customers’ to the linked accounts of Shivraj family.
Against this backdrop, Citibank N.A. filed an application with SEBI under settlement mechanism and proposed to pay Rs 4,50,72,263 as settlement charges. The amount was approved by the panel of Sebi’s Whole Time Members. SEBI has decided not to initiate any enforcement action against the bank.