sebi:SO/AN/EFD2/2024-25/7388
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Facts / Headnote
Settled
Provisions invoked
- s. 19
- s. 15J
Regulations
- Reg. 25
- Reg. 28
- Reg. 23
Holding
Any proceedings that may be initiated against the Applicants for the violations mentioned at paragraph 1 above are settled upon payment of Rs 9,00,000. SEBI shall not initiate any enforcement action against the Applicants for the said violations, subject to its rights under Regulation 28 of the Settlement Regulations.
Full text
Page 2 of 3 (hereinafter referred to as “AMC”) and Applicant 2 is the Trustee Company of Groww Mutual Fund. 2.2 The Applicants, in the settlement application, stated that during April 01, 2020 to March 31, 2022 certain scheme related expenses were being paid by the AMC and were not paid from the schemes. This resulted in the AMC bearing the expenses towards running their schemes thereby violating certain provisions of the SEBI Circular dated October 22, 2018 in particular Para 1 of the Circular which mandates that all scheme related expenses including commission paid to distributors, by whatever name it may be called and in whatever manner it may be paid, shall necessarily be paid from the scheme only within the regulatory limits and not from the books of the AMC, its associate, sponsor, trustee or any other entity through any route.
Page 3 of 3 for the said amount was issued to the Applicants on May 16, 2024. The Applicants informed about the remittance of the aforesaid settlement amount on June 04, 2024 and SEBI has confirmed credit of the same.
3. In view of the aforesaid facts, the Applicants filed the present application for the purpose of settling the proceedings that may be initiated against them for the aforesaid violation.
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Source: SecMarx — sebi:SO/AN/EFD2/2024-25/7388. 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.