WASHINGTON - Citigroup Global Markets, Inc, the US-based brokerage and securities arm of banking behemoth Citigroup, has been fined $15 million by US regulators for supervisory failures related to equity research and involvement in IPO roadshows.

Financial Industry Regulatory Authority (FINRA) announced Monday that from January 2005 to February 2014, Citigroup Global Markets was found to have failed to "adequately supervise communications between its equity research analysts and its clients and Citigroup sales and trading staff."

Citigroup was also found to have permitted one of its analysts to participate indirectly in two road shows promoting IPOs to investors".

The Department of Enforcement and the Office of Fraud Detection and Market Intelligence, which conducted the probe on behalf of FINRA, the regulator found that during the nine years period "Citigroup failed to meet its supervisory obligations regarding the potential selective dissemination of non-public research to clients and sales and trading staff".

During this period, Citigroup issued approximately 100 internal warnings concerning communications by equity research analysts.

However, when Citigroup detected violations involving selective dissemination and client communications, there were lengthy delays before the firm disciplined the research analysts and the disciplinary measures lacked the severity necessary to deter repeat violations of Citigroup policies, the regulator stated.

The regulator cited the example of "idea dinners" hosted by Citigroup equity research analysts that were also attended by some of Citigroup's institutional clients and sales and trading personnel.

At these dinners, Citigroup research analysts discussed stock picks, which, in some instances, were inconsistent with the analysts' published research.

Despite the risk of improper communications at these events, Citigroup did not adequately monitor analyst communications or provide analysts with adequate guidance concerning the boundaries of permissible communications.

In another instance, FINRA found that an analyst employed by a Citigroup affiliate in Taiwan selectively disseminated research information concerning Apple Inc. to certain clients, which was then selectively disseminated to additional clients by a Citigroup equity sales employee.

Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, said, "The frequent interactions between Citigroup analysts and clients at events like 'idea dinners' created a heightened risk that views inconsistent with research would selectively be disclosed to clients. Citigroup failed to effectively police these risks."

FINRA found that, in 2011, a Citigroup senior equity research analyst assisted two companies in preparing presentations for investment banking road shows. Between 2011 and 2013, Citigroup did not expressly prohibit equity research analysts from assisting issuers in the preparation of road show presentation materials.

Cameron Funkhouser, Executive Vice President of FINRA's Office of Fraud Detection and Market Intelligence, said, "Investment banking and research departments are guardians of material, non-public information and have the responsibility to maintain strict control and protection of that information."

In settling this matter, Citigroup neither admitted nor denied the charges, but consented to the entry of FINRA's findings, the official statement clarified.

Sophia Stewart, a Citigroup spokeswoman, said, "We are pleased to have resolved and put this matter behind us. The bank takes regulatory compliance seriously and believes it has strong procedures and controls in place to address the issues raised by Finra".

According to media report there are seven other banks besides Citigroup that are facing similar charges.