BNP Paribas pays ₹3,997,000 to settle FPI rule violation case with Sebi

Paris-based financial services firm BNP Paribas on Tuesday settled with market regulator Sebi a case of alleged violation of foreign portfolio investors rule after paying Rs 39.97 lakh towards settlement charges.

The noticee (BNP Paribas) filed settlement application proposing to settle the instant proceedings initiated against them vide show cause notice dated on February 25, 2025, without "admitting or denying the findings of facts and conclusions of law", Sebi said.

The settlement order came after the Securities and Exchange Board of India (Sebi) initiated adjudication proceedings in respect of BNP Paribas for the alleged violation of FPI (Foreign Portfolio Investors) rules.

Thereafter, a show cause notice (SCN) was issued by the markets watchdog Sebi on February 25, 2025 for the alleged violation of rules.

Subsequently, BNP Paribas filed revised settlement terms which was approved by Sebi and paid the amount.

"In view... the instant adjudication proceedings initiated against the noticee viz, BNP Paribas vide SCN dated February 25, 2025, are hereby disposed of in terms of Sebi (Settlement Proceedings) regulations," Sebi's adjudicating officer Sudeep Mishra said in the order.

As per the settlement order, the markets watchdog will not initiate enforcement proceedings against BNP Paribas for the violations.

However, Sebi retains the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement.