sebi:EAD/AO-NP/AS/45/2017
Facts / Headnote
SCN disposed without imposition of monetary penalty
Provisions invoked
- s. 15
- s. 15J
- s. 15D
Regulations
- Reg. 25
- Reg. 47
- Reg. 10
- Reg. 9
- Reg. 52(A)
- Reg. 25(19)
- Reg. 52A
Parties
- Indiabulls Mutual Fund
- Indiabulls Asset Management Company Limited
- Indiabulls Trustee Company Limited
Holding
The adjudication proceedings against Indiabulls Mutual Fund, its AMC and Trustee were disposed without imposing any monetary penalty under Section 15D(b) and Section 15HB of the SEBI Act, 1992.
Full text
Page 2 of 26 (Half Yearly / Quarterly dividend) AMC has not obtained trustee approval and not issued addendum as per guidelines in violation of Reg. 10 (a) of SEBI Mutual Fund Regulations, 1996, Reg. 25 (16), Reg. 52(A), Clause 9 of Fifth Schedule of SEBI (Mutual Fund) Regulations, 1996 and SEBI Circular No. SEBI / IMD / CIR No. 1 / 64057 / 06 dated April 04, 2006. It was further stated in inspection report that the Indiabulls AMC was not valuing the same security consistently across schemes and in several instances single security was valued at different prices in different schemes in violation of Reg. 10 (a) of SEBI Mutual Fund Regulations, 1996, Reg. 25 (19), Reg. 47, Eighth Schedule of SEBI (Mutual Fund) Regulations, 1996 and SEBI Circular no. SEBI/IMD/CIR No.16/ 193388/2010 dated Feb 02, 2010.
Page 3 of 26 04, 2006, Reg. 25 (19), Reg. 47, Eighth Schedule of SEBI (MF) Regulations, 1996 and SEBI circular no. SEBI/IMD/CIR No.16/ 193388/2010 dated Feb 02, 2010.
Page 4 of 26 followed by IBAMC. Further it does not specify scheme details of Indiabulls Mutual Fund wherein the alleged violation may have been observed. Without prejudice to the fact that specific violation has not been brought out, we are unable to reply on behalf of IBAMC. It may be noted that the Scheme Information Document (“SID”) of various schemes of Indiabulls Mutual Fund, offers pre-defined Dividend facility of Monthly, Quarterly and Half-yearly frequency subject to availability of distributable surplus. The respective SIDs were pre-approved by the Board of Directors of IBTCL and subsequently approved by SEBI prior to any scheme launch. Further, on launch of NFO, various scheme’s SID has been available in public domain for wider audience and for information of investors in the scheme. Further, it may be noted that referred dividend was paid based on the available distributable surplus. There is no adverse observation in this respect in the inspection report. It was ensured that no communication in respect of dividend was disseminated to any external or internal entity other than the investment committee members. Further, there is no adverse observation in the inspection report on movement in scheme AUM before and/or after the record date. Aforementioned facts clearly highlight that the IBAMC has followed at all times high standards of service, exercised due diligence, ensured proper care and exercised independent professional judgment while rendering its/their servi
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Source: SecMarx — sebi:EAD/AO-NP/AS/45/2017. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.