Sebi imposes Rs 1 cr penalty on Fidelity Management for operating as FPI

The Securities and Exchange Board of India (Sebi) on Friday imposed a penalty of Rs 1 crore on Fidelity Management & Research Company (FMRC) for operating as a foreign portfolio investor (FPI) without proper registration. 

The matter relates to continued operations by FMRC in the Indian securities market even when the FPI registration of its associate Fidelity Investments Money Management (FIMM) ceased following the merger between the two entities.

The merger of FIMM into FMRC resulted in the cessation of the FPI registration of FIMM, while FMRC had not obtained an FPI registration.

Sebi noted that FMRC showed a ‘lackadaisical approach’ in providing the information and continued to carry out FPI activities ‘unabated’ to the tune of Rs 8.8 crore.