The Securities and Exchange Board of India (SEBI) has reached a settlement with BNP Paribas concerning alleged violations related to the registration and re-categorization of foreign portfolio investors (FPIs) in accordance with FPI regulations. The agreed settlement amount is ₹39.97 lakh.
SEBI initiated adjudication proceedings against BNP Paribas after identifying potential breaches of the SEBI (Foreign Portfolio Investors) Regulations of 2014 and 2019, along with associated operational guidelines. The regulator claimed that the bank improperly granted Category II registration to six FPIs, which were ineligible under the 2014 regulations, and subsequently re-categorized them as Category I without ensuring their compliance with the regulatory requirements set forth by the UK Financial Conduct Authority.
A show cause notice was issued to BNP Paribas in February of this year. While awaiting adjudication, the bank submitted a settlement application under the relevant regulations, seeking to resolve the issue without admitting or denying the allegations made against it.
Upon reviewing the settlement proposal, SEBI’s internal committee recommended a settlement sum of ₹39.97 lakh, which received approval from both the High Powered Advisory Committee and SEBI’s Whole Time Members in September. Following the approval, the company paid the settlement amount in October, leading to the formal closure of the adjudication proceedings.
The settlement order issued by SEBI stated that the decision is effective immediately. However, SEBI retains the authority to revisit the case if it discovers that the applicant provided incomplete information or violated the conditions of the settlement.
Published on November 11, 2025.
