ICICI Bank said it has received a warning letter from the Securities and Exchange Board of India (SEBI) for permitting a foreign portfolio investor (FPI) to repatriate funds before the completion of the mandatory retention period under the Voluntary Retention Route (VRR).
In a disclosure to stock exchanges on Thursday, the bank said SEBI issued the warning letter on June 1, 2026, which was received by the lender on June 2.
The regulator found that ICICI Bank, acting in its capacity as a custodian, had allowed one FPI to repatriate funds prematurely, resulting in a violation of the Reserve Bank of India’s directions and SEBI’s FPI regulations.
The private sector lender said the matter relates to its custodial operations and clarified that the warning would have no material impact on its financial position, operations, or other business activities.
ICICI Bank also informed exchanges that the disclosure itself was not made within the prescribed timeline because of an inadvertent internal delay.