Canara Robeco Asset Management Company has paid over Rs 84.82 lakh to settle alleged violations of MF regulations with market regulator Sebi.
Through an order dated June 11, the Securities and Exchange Board of India (Sebi) informed that it had started adjudication proceedings against the AMC for alleged violation of mutual fund regulations.
The regulator had issued a showcause notice to the AMC asking why an inquiry should not be held or penalty not imposed. Pending the adjudication proceedings, the AMC chose to settle the proceedings without admitting or denying the findings of facts and conclusions of law.
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The showcause notice listed alleged violations under Regulation 38 of Mutual Fund Regulations, which deals with prohibition of promising guaranteed returns; Clause B of a Sebi circular dated December 12, 2003, which deals with the number of investors a scheme should have and the maximum percentage each investor can hold in the corpus of the scheme; Regulation 48 (2) of MF Regulations (which deals with the frequency of calculation of net asset value and its disclosure) read with Sebi circulars dated February 9, 2001, and dated March 29, 2006; Clause III of Sebi circular dated October 6, 2017 (which deals with the categorisation and rationalisation of schemes); Clause No. 5 of Sebi circular dated May 23, 2008 (which deals with updation of Key Information Memorandum and Simplification of Offer Document of MF Schemes); and Clause D of a Sebi circular dated October 22, 2018 (which deals with disclosure of scheme performance).
The AMC filed a settlement application dated August 28, 2023. After meeting with the Internal Committee of Sebi on December 12, 2023, the AMC proposed revised settlement terms via an email dated December 22, 2023.
The High Powered Advisory Committee in its meeting held on March 04, 2024, considered the settlement terms proposed and recommended that the case may be settled upon payment of ₹ 84,82,500 (Rupees Eighty Four Lakhs Eighty Two Thousand Five Hundred Only) by the AMC.
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