ICICI Bank receives SEBI warning over FPI fund repatriation lapse
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The regulator said ICICI Bank, serving as a custodian, let a foreign portfolio investor move money out before the required holding period, breaching RBI and SEBI rules
ICICI Bank announced it received a warning from SEBI after allowing a foreign portfolio investor to withdraw funds earlier than the mandated holding period under the Voluntary Retention Route.
In a Thursday filing with the exchanges, the bank noted that SEBI issued the warning on June 1, 2026 and the bank received it on June 2.
The regulator determined that, as a custodian, ICICI Bank permitted an FPI to send money abroad ahead of schedule, contravening RBI directives and SEBI’s FPI rules.
The private‑sector lender added that the issue concerns only its custodial business and warned that the notice will not materially affect its finances, operations or other activities.
ICICI Bank further told the exchanges that the disclosure was delayed due to an internal oversight, missing the required deadline.
Published on June 4, 2026
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