JP Morgan Asset Management chief executive Nandkumar Surti has settled proceedings with regulator Sebi in connection with alleged violation of mutual funds norms in the Amtek Auto case on payment of Rs 27.2 lakh towards settlement charges.
The regulator had initiated adjudication proceedings to inquire about the alleged violation of the code of conduct and mutual fund regulations by JP Morgan Asset Management India Pvt Ltd, JP Morgan MF and JP MF India Pvt Ltd and also to inquire into alleged violation mutual fund norms by Surti.
Pending proceedings, Surti, in February 2016 had applied with the Securities and Exchange Board of India (Sebi) to to settle the case on payment settlement charges.
Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of Rs 27.2 lakh. This was also approved by the regulator's panel of whole-time members, following which he remitted the amount. Accordingly, the regulator said "this settlement order disposes of the aforesaid adjudication proceedings initiated against the applicant, namely Surti".
The mutual funds unit of JP Morgan were under Sebi scanner since December 2015 for violating code of conduct and mutual fund regulations for restricting redemptions from two of its debt schemes -- Short Term Income Fund and India Treasury Fund -- following a default in the underlying Amtek Auto debt paper.
Yesterday, JP Morgan Mutual Fund units settled proceedings with Sebi in the same case on payment of over Rs 8 crore towards settlement fee.
In March 2016, Edelweiss Asset Management had announced the acquisition of global giant JP Morgan's mutual fund business in India.
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