sebi:SO/SM/EFD2/2022-23/6912
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Facts / Headnote
Proceedings initiated against the Applicant vide Show Cause Notice dated October 08, 2021 are disposed of on the basis of settlement terms, upon payment of ₹29,25,000/- towards settlement charges.
Provisions invoked
- s. 19
- s. 15H
- s. 15J
Regulations
- Reg. 25
- Reg. 28
- Reg. 23(1)
- Reg. 3(1)
- Reg. 7B
Parties
- Fairfax Financial Holding Limited
Holding
The proceedings against Fairfax Financial Holding Limited for alleged non-compliance with Regulation 7B of the MF Regulations were disposed of pursuant to a settlement without admission or denial of findings, upon payment of ₹29,25,000/- as settlement charges.
Full text
Settlement Order in the matter of Fairfax Financial Holding Limited Page 2 of 4 (a) 10% or more of the share-holding or voting rights in the asset management company or the trustee company of any other mutual fund; or (b) representation on the board of the asset management company or the trustee company of any other mutual fund. (3) Any person not in conformity with the sub-regulations (1) and (2) of this regulation, as on the date of the coming into force of this regulation shall comply with sub-regulations (1) and (2) within a period of one year from the date of the coming into force of this regulation. Provided that in the event of a merger, acquisition, scheme of arrangement or any other arrangement involving the sponsors of the mutual funds, shareholders of the asset management companies or trustee companies, their associates or group companies which results in the incidental acquisition of shares, voting rights or representation on the board of the asset management companies or trustee companies, this regulation shall be complied with within a period of one year of coming into force of such an arrangement. As mentioned in the provisions itself, for compliance of the aforementioned provision, a grace period of one year was granted to all such entities which were not compliant of the aforementioned provision on the day the amendment was made effective.
Settlement Order in the matter of Fairfax Financial Holding Limited Page 3 of 4 4. Subsequent to the issuance and receipt of the Show Cause, the Applicant vide application ref. 6912/2022, received June 06, 2022 in terms of Regulations 3(1) and 3(2) of the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2018 (hereinafter referred to as ‘Settlement Regulations’), proposed to SEBI to settle the instant proceedings, without admitting or denying the findings of fact and conclusions of law, through a settlement
Settlement Order in the matter of Fairfax Financial Holding Limited Page 4 of 4 8. This order shall come into force with immediate effect. Further, in terms of Regulation 28 of the Settlement Regulations, this order is without prejudice to the right of SEBI to take any enforcement action including restoring or initiating the proceedings in respect to which this settlement order is passed, if: a. the Applicant has not made full and true disclosure; b. the Applicant has breached any of the clauses/conditions of undertakings/waivers filed during the present settlement proceedings; and c. there was a discrepancy while arriving at the settlement terms.
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Source: SecMarx — sebi:SO/SM/EFD2/2022-23/6912. 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.