A former fund manager at Edelweiss Asset Management has paid Rs 19.5 lakh to settle allegations of violations of Mutual Fund (MF) Regulations.
A settlement order issued by the Securities and Exchange Board of India (Sebi) on October 22 stated that Abhishek Gupta had been sent a showcause notice asking why inquiry should not be held and penalty not be imposed for an alleged violation. The violation alleged was that Gupta failed to ensure that that the funds of the schemes were invested to achieve the objectives of the scheme.
Thus he had allegedly violated Regulation 25 (6B) (a) of Mutual Funds Regulations and para I (3) read with Annexure A (8) of SEBI circular SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 6, 2017 and para B(3)(1(a)) of SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2018/92 dated June 05, 2018.
Pending adjudication proceedings, Gupta filed a settlement application, which was placed before the Internal Committee of Sebi on April 18, 2024.
Sebi's order stated, "In view of the receipt of settlement amount by SEBI, the instant Adjudication Proceedings initiated against the Noticee viz., Mr. Abhishek Gupta vide Show Cause Notice No. SEBI/EAD-5/AN/RG/563/4/2024 dated January 04, 2024, are hereby disposed of in terms of Section 15JB of the SEBI Act, 1992 read with Regulation 23(1) of SEBI (Settlement Proceedings) Regulations, 2018."
It added, "The passing of this Settlement Order shall however be without prejudice to the rights of SEBI under Regulation 28 and 31 of the SEBI (Settlement Proceedings) Regulations, 2018, to initiate appropriate actions, including restoring or initiating the proceedings in respect of which this settlement order is passed against the Applicant, if:
12.1. it comes to the notice of the Board that the applicant has not made full and true disclosure;
12.2. applicant has violated the undertakings or waivers;
12.3. there was a discrepancy while arriving at the settlement terms."
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