sebi:SO/AK/BS/2022-23/6965-69
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Facts / Headnote
Adjudication proceeding disposed of pursuant to settlement; settlement amount received and settlement terms accepted.
Provisions invoked
- s. 15
- s. 15J
- s. 15D
Regulations
- Reg. 25
- Reg. 28
- Reg. 23(1)
- Reg. 44(1)
- Reg. 25(16)
- Reg. 25(19)
Parties
- L&T Investment Management Limited
- Kailash Kulkarni
- Shriram Ramanathan
- Vikas Garg
- Jalpan Shah
Holding
The Adjudication Proceeding initiated against L&T Investment Management Limited, Kailash Kulkarni, Shriram Ramanathan, Vikas Garg and Jalpan Shah is disposed of on the basis of the settlement terms, without admitting or denying the findings of fact and conclusions of law, upon payment of the settlement amounts specified.
Full text
Settlement Order in respect of L&T Investment Management Limited and others Page 2 of 5 1.3. Applicant no. 1 failed to ensure that valuation of its investments must allow fair treatment to all investors including existing investors as well as investors seeking to purchase or redeem units of mutual funds in all schemes at all points of time; the valuation of investments should be based on the principles of fair valuation i.e. valuation should be reflective of the realizable value of the securities/assets; the valuation should be done in good faith and in true and fair manner through appropriate valuation policies and procedures; the valuation policies and procedures approved by the Board of asset management company should seek to address conflict of interest; and there should be policies and procedures to detect and prevent incorrect valuation. 1.4. It was observed that Kailash Kulkarni (Applicant no. 2), as the CEO of the AMC, failed to ensure that the Mutual Fund complied with all the provisions of MF Regulations and the guidelines or circular issued in relation therein and that the investments made by the fund manager(s) are in the interest of the unit holders. 1.5. It was observed that Shriram Ramanathan, Vikas Garg and Jalpan Shah (Applicant no: 3, 4 & 5) failed to ensure that the funds of the schemes were invested to achieve the objectives of the schemes and in the interest of the unit holders.
Settlement Order in respect of L&T Investment Management Limited and others Page 3 of 5 specified in Eighth Schedule under Regulation 25(19) and 47 of MF Regulations by Applicant 1. 2.2. Regulation 25(6A) of MF Regulations by Applicant no. 2. 2.3. Regulation 25(6B)(a) of MF Regulations by Applicant no.s 3, 4 & 5.
Settlement Order in respect of L&T Investment Management Limited and others Page 4 of 5 Applicant No. Amount Applicant 1 Rs. 57,03,750/- (Fifty seven Lakh Three Thousand Seven Hundred Fifty Rupees) Applicant 2 Rs.14,62,500/- (Fourteen Lakh Sixty Two Thousand Five Hundred Rupees) Applicant 3 Rs.14,62,500/- (Fourteen Lakh Sixty Two Thousand Five Hundred Rupees) Applicant 4 Rs.14,62,500/- (Fourteen Lakh Sixty Two Thousand Five Hundred Rupees) Applicant 5 Rs.14,62,500/- (Fourteen Lakh Sixty Two Thousand Five Hundred Rupees)
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Source: SecMarx — sebi:SO/AK/BS/2022-23/6965-69. 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.