Citibank N.A. has reached a settlement with the Securities and Exchange Board of India, agreeing to pay a sum of over Rs 40 lakh as part of an ongoing investigation into multiple alleged regulatory violations. The settlement follows SEBI's probe into Citibank's non-compliance with various rules, including those related to foreign investments, guidelines for depositories and participants, and operational procedures for handling financial transactions.
The investigation, which led to the settlement, revealed several lapses in Citibank's practices. Notably, SEBI observed that Citibank's implementation team had allegedly regenerated the Customer Acquisition Form and copied the end client’s wet-ink signatures without the knowledge or consent of the clients.
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During the course of the investigation, SEBI issued a show cause notice to Citibank N.A. on Feb. 9, 2024, asking about these breaches. In response, Citibank filed a settlement application with SEBI, asking to resolve the proceedings without admitting or denying the findings.
A High Powered Advisory Committee reviewed SEBI’s Internal Committee's recommendation about the settlement and, during its meeting on June 14, 2024, endorsed the settlement proposal. This recommendation was later approved by SEBI’s Panel of Whole Time Members on July 25, 2024.
Citibank then remitted the settlement amount on Aug. 1, 2024, effectively closing the proceedings initiated against the bank.
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