sebi:ORDER/PM/RR/2020-21/8667
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Facts / Headnote
Penalty imposed for violation of Regulation 7B of SEBI (Mutual Fund) Regulations, 1996
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7B
Parties
- State Bank of India
Holding
The Noticee, State Bank of India, violated Regulation 7B of SEBI (Mutual Fund) Regulations, 1996 by holding 18.24% in UTI AMC and 18.50% in UTI Trustee Company while being a sponsor of SBI Mutual Fund, and a penalty of Rs. 10,00,000 was imposed under Section 15HB of the SEBI Act, 1992.
Full text
Adjudication Order in respect of State Bank of India Page 2 | 16 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 3. Show Cause Notice (hereinafter referred to as ‘SCN’) dated March 12, 2020 was served on the Noticee by the undersigned at its latest address available on record. The SCN was issued to the Noticee under the provisions of Rule 4 (1) of the Adjudication Rules, to show cause as to why an inquiry should not be held against the Noticee and why penalty should not be imposed on the Noticee under the provisions of Sections 15HB of the SEBI Act, for the aforesaid alleged violation.
Adjudication Order in respect of State Bank of India Page 3 | 16 d) It was further observed that SBI had holdings in more than one mutual fund. The shareholding pattern of UTI AMC and SBI AMC as on March 13, 2019 was examined which is as detailed below:
Adjudication Order in respect of State Bank of India Page 4 | 16 iv. From the shareholding pattern of UTI AMC and Trustee Company it was observed that 3 of the sponsors/shareholders of UTI AMC and Trustee, namely LIC, SBI and BOB are also sponsors of their LIC MF, State Bank of India MF and Bank of Baroda MF respectively.
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Source: SecMarx — sebi:ORDER/PM/RR/2020-21/8667. 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.