JP Morgan Chase Bank (JPMC) settled with the Securities and Exchange Board of India (SEBI) for Rs 22.1 lakh in a case of alleged violations of the SEBI (FPI) Regulations 2019. JPMC settled the matter without admitting or denying the findings. 

Under the regulations, only registered foreign portfolio investors (FPI) can participate in the securities market. Any structure, constitution, common ownership, or control change would reassess its eligibility. 

In August 2021, SEBI received a letter from JP Morgan informing the regulator about the delay in intimation of change in material information of Fidelity Investments Money Management (FIMM), involving its merger with its affiliate Fidelity Management & Research Company (FMRC). 

Following the merger, the FPI registration of FIMM ceased. SEBI found out that the merged entity had not obtained FPI registration and was operating under the name, accounts and FPI registration of FIMM in the securities market.

Despite being informed about the merger, SEBI initiated adjudication proceedings against JPMC as the depository participant failed to prevent FMRC from trading in the securities market.

JPMC representatives met with SEBI’s Internal Committee and proposed to settle the alleged violations on payment of Rs 22.10 lakh.