HDFC Bank, HSBC, Citi Bank and Deutsche Bank AG have settled with capital markets regulator SEBI a case for allegedly not meeting the eligibility criteria prescribed under the Foreign Portfolio Investors rules.These entities have paid a total of Rs 39.36 lakh towards the settlement charges.Deutsche Bank AG paid Rs 11.05 lakh, the Hongkong and Shanghai Banking Corporation Ltd paid Rs 10.87 lakh, while HDFC Bank paid Rs 9.18 lakh and Citi Bank NA paid Rs 8.25 lakh.The order came after the applicants filed four settlement applications proposing to settle, without 'admitting or denying the findings of fact and conclusions of law' through a settlement order."The instant adjudication proceedings initiated against the noticees viz., Deutsche Bank AG, The Hongkong and Shanghai Banking Corporation, HDFC Bank and Citi Bank, vide Show Cause Notice dated Jun. 19, 2023, are hereby disposed of Settlement Regulations," SEBI's Adjudicating Officer Amar Navlani said in the order on Thursday.The order came after SEBI observed that as on Oct. 05, 2021, there were certain registered FPIs from the province of Manitoba, who were ineligible for registration /renewal in terms of the FPI norms.The regulator sought explanation and details from all the Designated Depository Participants regarding the registered FPIs but not meeting the eligibility criteria as per the rules.Pursuant to the information received from the depository participants as of Oct. 14, 2021, the markets watchdog observed that DDPs such as, Deutsche Bank AG, the Hongkong and Shanghai Banking Corporation and Citi Bank had granted registration /renewal to FPIs, which were ineligible as per the FPI rules.Further, HDFC Bank had permitted a FPI to transact in indian securities market, despite being ineligible in terms of the SEBI (FPI) regulations, 2019.In view thereof adjudication proceedings were initiated in respect of the applicants.Further, a common Show Cause Notice was issued by the regulator on Jun. 19, 2023 to the noticees for the alleged violation of norms, the regulator said.Subsequent to the issuance of the SCN, the applicants filed settlement applications with SEBI, which recommended to settle the matter on payment of Rs 39.36 lakh.Consequently, the applicants paid the amount and settled the case.