Citigroup Penalized For Violating Regulations

Watchdog for the Indian markets, The Securities and Exchange Board of India (SEBI) has slapped a financial penalty of Rs 1 crore on Citigroup for allegedly violating FII regulations.

The market regulator had conducted an investigation into the issue of offshore derivative instruments by Citigroup Global Markets Holdings (CGMH), an affiliate of Citigroup Global Markets (Mauritius), to Magnus Capital Corporation (MCCL), an overseas corporate body (OCB).

Citigroup Global Markets (Mauritius) is a Sebi-registered sub-account of Citigroup Global Markets, the registered foreign institutional investor (FII).

Citigroup has been slammed by several regulators around the world. Its most serious indictment came two years ago when Japanese financial authorities ordered Citigroup Inc. to suspend its private-banking operations for because of a long list of serious violations of laws and regulations.