JF Asset Management settles case with Sebi

JF Asset Management, the subsidiary of JP Morgan Asset Management, has settled a case with Sebi regarding the alleged delay in submitting application for acquiring shares in Multi Commodity Exchange (MCX).

The company paid Rs 5.15 lakh to settle the case with the markets regulator, according to an order.

The regulator, on examination, "prima-facie" found that during January 2017, JF Asset along with persons acting in concert like JP Morgan Eastern Smaller Companies Fund, JP Morgan Indian Investment Company (Mauritius) Ltd, JF India Active Open Mother Fund, among others, acquired certain number of shares in MCX.

The acquisition increased JF Asset's shareholding in the commodity exchange beyond 2 per cent, Securities and Exchange Board of India (Sebi) said.

Post acquisition, the company was required to apply for approval of Sebi within 15 days.

However, the application was forwarded only after a period of more than one year on March 8, 2018, and thereby violated Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, Sebi said.

Before initiating proceedings, the regulator issued notice of summary settlement to the company in January 2019 intimating that the defaults may be settled and disposed of under settlement mechanism by paying Rs 5.15 lakh.

Following this the company filed application to settle the defaults without admitting or denying the findings and paid Rs 5.15 lakh as settlement charges in February 2019.

Accordingly, "the proposed proceedings that could have been initiated for the default...are settled," Sebi said in an order dated March 5.