JP Morgan Pays Rs 22 Lakh To Settle Case With SEBI

JP Morgan Chase has reportedly paid Rs 22 lakh to settle a securities law violation case with Securities Exchange Board of India (SEBI). The matter has been settled by JP Morgan Chase Bank (JPMC) through a settlement order "without admitting or denying the findings of fact,” as per reports. The settlement amount was approved by the regulator.

"It is hereby ordered that the instant adjudication proceedings initiated against JPMC vide show cause notice (SCN) dated September 23, 2022, and supplementary show cause notice (SCCN) dated December 29, 2022, is disposed of," Asha Shetty, Sebi's Adjudicating Officer, said in a settlement order.

The designated depository participant J P Morgan Chase Bank (JPMC) had informed SEBI about the delay in intimating about the merger of Fidelity Investments Money Management Inc. (FIMM), a registered FPI, with its affiliate Fidelity Management & Research Company LLC (FMRC), on August 9, 2021.

After the communication, SEBI conducted an examination regarding the delay in intimation of change in material information. SEBI noticed that the merger of FIMM with FMRC resulted in cessation of FIMM, the entity which was registered as FPI.

Even though FMRC did not obtain its FPI registration, it was operating in the Indian securities market under the name, accounts and FPI registration of FIMM.

It further came to limelight that the JPMC failed to prevent FMRC from trading in the securities market despite having material on record that indicated that FIMM had merged into FMRC and it did not have a valid FPI registration.