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MAS Slaps Penalty Of SGD 2.4 Million On JP Morgan Chase Bank For Misconduct By Relationship Managers In 24 Bond Transactions

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1 year ago

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The Monetary Authority of Singapore (MAS) has imposed a civil penalty of SGD 2.4 million on JPMorgan Chase Bank, N.A. (JPM), according to a media release issued by the central bank of Singapore. The penalty was for JPMorgan Chase Bank failing to prevent and detect misconduct committed by its relationship managers (RMs).

The media release said: “In 24 over-the-counter (OTC) bond transactions, the RMs had made inaccurate or incomplete disclosures to clients, resulting in the clients being charged spreads that were above the bilaterally agreed rates.” These transactions took place between November 2018 and September 2019, said MAS.

Explaining that the RMs of JPMorgan Chase Bank had misled the clients into paying more than what they should have paid, MAS said that “JPM did not establish adequate processes and controls to ensure that its RMs adhered to pre-agreed spreads with clients when executing OTC bond transactions on their behalf”.

The central bank “sampled OTC bond transactions conducted by JPM’s RMs” and found that in the 24 transactions, the RMs had “either misrepresented the price components or omitted material information that the spreads charged were above the agreed rates”. The phrase “price components” refers to the executed interbank price and/or spread charged.

MAS said that this misrepresentation and omission by the RMs was “in contravention of sections 201(c) and 201(d) of the Securities and Futures Act (SFA)”.

Informing that the private bank had accepted these violations and its responsibility for what the relationship managers did, MAS said: “JPM has admitted liability under section 236C of the SFA for its failure to prevent or detect the misconduct by its RMs and has paid MAS the civil penalty. The bank has refunded the overcharged fees to affected clients.”

At the same time, JPMorgan Chase Bank has taken measures to prevent a repeat of this. “The bank has also enhanced its pricing frameworks and internal controls to prevent the recurrence of such misconduct,” said MAS. “Separate reviews into the individual RMs involved in the misconduct are ongoing.”

What is the MAS civil penalty?

“A civil penalty action is not a criminal action and does not attract criminal sanctions. The civil penalty regime, designed to complement criminal sanctions and provide a nuanced approach to combat market misconduct, became operational at the beginning of 2004,” said the MAS media release.

“Under section 232 of the SFA, MAS may enter into an agreement with any person for that person to pay, with or without admission of liability, a civil penalty for contravening any provision of Part 12 of the SFA. The civil penalty may be up to three times the amount of the profit gained or loss avoided by that person as a result of the contravention, subject to a minimum of USD 50,000 (if the person is not a corporation) or $100,000 (if the person is a corporation).”

Under section 201(c) of the SFA, no person shall, directly or indirectly, in connection with the subscription, purchase or sale of any capital market products, make any statement he knows to be false in a material particular.

● Section 201(d) of the SFA
Under section 201(d) of the SFA, no person shall, directly or indirectly, in connection with the subscription, purchase or sale of any capital market products, omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.

● Section 236C of the SFA
Under section 236C of the SFA, a corporation which fails to prevent or detect a contravention of any provision in Part 12 of the SFA that is committed by an employee or officer for its benefit and attributable to its negligence, commits a contravention and shall be liable to an order for a civil penalty.

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Maharashtra on path to becoming GCC hub: CM Fadnavis

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12 hours ago

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December 12, 2025

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Nagpur, Dec 12: Chief Minister Devendra Fadnavis on Friday announced that a crucial milestone has been achieved in the journey to establish Maharashtra as a GCC (Global Capability Centre) Hub.

He said that the Brookfield company is set to build Asia’s largest Global Capability Centre (GCC) in Mumbai, spanning approximately 2 million square feet.

The Chief Minister said that this project is expected to generate a total of 45,000 jobs, including 15,000 direct and 30,000 indirect jobs.

He stated that due to the state’s talent pool, infrastructure, and industry-friendly environment, Maharashtra is becoming a preferred destination for Global Capability Centres.

“The new GCC policy will lead to large-scale skill-based job creation and economic growth,” he added.

He also mentioned that FedEx, a global leader in the logistics sector, is keen to invest in its GCC and other operations near the Mumbai-Navi Mumbai airport area, said the government release.

The Chief Minister informed that he requested Microsoft to consider Maharashtra for their investments, noting that their largest existing investment is already in the state.

He expressed confidence that Microsoft will make a major investment in the future and take the lead in making Maharashtra an Artificial Intelligence (AI) centre.

The Chief Minister said that Maharashtra’s model for crime control with the help of Artificial Intelligence is a guiding light for the entire country.

Chief Minister Fadnavis confirmed that Microsoft has assured priority to Maharashtra in their largest ever investment in India, amounting to $17 billion.

He further highlighted the ‘Marble’ platform developed by Maharashtra, which helps detect cyber and financial crimes in just 24 hours instead of 3-4 months.

He said that this has resulted in saving people’s money and has expedited the process of tracking criminals.

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India’s CPI inflation estimated at 0.71 pc for Nov, food inflation stays in negative zone

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14 hours ago

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December 12, 2025

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New Delhi, Dec 12: India’s year-on-year inflation rate, based on the Consumer Price Index (CPI), was estimated at 0.71 per cent for November this year which was marginally higher than the 0.25 per cent in October, according to figures released by the Ministry of Statistics on Friday.

Food inflation stayed in the negative zone during November at (-) 3.91 per cent as prices of food goods fell compared to the same month of the previous year. Food inflation has now stayed negative for the sixth month in a row, easing the burden on household budgets.

However, the increase in headline inflation during November 2025 is mainly attributed to an increase in the inflation of vegetables, eggs, meat and fish, spices, and fuels compared to October, according to an official statement.

The retail inflation had eased further in October, after having plummeted to an over 8-year low of 1.54 per cent in September, as prices of food items and goods across sectors fell during the month.

The declining trend in food prices continued in October as food inflation fell deeper in the negative zone at (-) 5.02 per cent from (-) 2.28 per cent in September.

However, the overall outlook for inflation remains benign.

The RBI’s monetary policy committee (MPC) last week slashed its forecast for India’s inflation rate for the financial year 2025-26 to 2 per cent from 2.6 per cent predicted in October due to the sharp decline in food prices and the GST rate cuts playing out.

RBI Governor Sanjay Malhotra announced a reduction in the repo rate by 25 basis points to 5.25 per cent from 5.5 per cent earlier, as inflation had come down and the monetary policy could focus on boosting growth.

Malhotra said that the surge in economic growth to 8.2 per cent in the second quarter of the current financial year and the sharp decline in inflation to 1.7 per cent had provided a rare “Goldilocks period” for the Indian economy.

“The MPC noted that headline inflation has eased significantly and is likely to be softer than the earlier projections, primarily on account of the exceptionally benign food prices. Reflecting these favourable conditions, the projections for average headline inflation in 2025-26 and Q1:2026-27 have been further revised downwards.”

Malhotra also pointed out that core inflation (which excludes food and fuel) remained largely contained in September-October, despite continued price pressures exerted by precious metals. Excluding gold, core inflation moderated to 2.6 per cent in October. Overall, the decline in inflation has become more generalised, he added.

The RBI Governor observed that food supply prospects have improved on the back of higher kharif production, healthy rabi sowing, adequate reservoir levels and conducive soil moisture. Barring some metals, international commodity prices are likely to moderate going forward.

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Sensex, Nifty extend gains as metal stocks rally

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14 hours ago

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December 12, 2025

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Mumbai, Dec 12: Indian stock markets gained for the second straight session on Friday, supported by a strong global rally and heavy buying in metal stocks.

Sentiment also improved after Prime Minister Narendra Modi spoke with US President Donald Trump on Thursday to discuss strengthening economic ties, as both countries continue working toward a trade agreement.

At the closing bell, the Sensex had risen 449.53 points, or 0.53 per cent, to 85,267.66.

The Nifty also moved higher, adding 148.40 points, or 0.57 per cent, to trade at 26,046.95.

“In the near term, the trend is likely to remain constructive as long as the index holds above 25,900, which is expected to serve as a key support level,” experts said.

“On the higher side, the index may move towards 26,300 in the short term,” they added.

Several major stocks led the gains on the Nifty, including Tata Steel, Eternal, UltraTech Cement, L&T, Maruti Suzuki, Bharti Airtel, Adani Ports, Axis Bank and Bajaj Finance.

However, some stocks came under pressure due to profit booking. HUL, Sun Pharma, Asian Paints, ITC, Power Grid and HCL Tech were among the top losers.

In the broader markets, the Nifty MidCap index rose 1.18 per cent, while the Nifty SmallCap index advanced 0.94 per cent.

Sector-wise, the Nifty Metal index led the rally with a jump of 2.63 per cent, followed by realty, consumer durables and oil and gas. The FMCG and media sectors slipped into the red.

Meanwhile, silver prices in India continued their sharp upward trend. Silver futures crossed the historic Rs 2 lakh per kg mark for the first time on Friday, extending a rally that has pushed the metal up nearly 130 per cent so far this year.

Experts said that the combined boost from global cues, strong sectoral performance and improving geopolitical engagement helped the markets end the week on a positive note.

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