HDFC MF settles the 'regulation violation' case with Sebi, pays Rs 37.9 mn

The settlement was approved by Sebi's high-powered committee in October and subsequently by a panel of whole-time members of Sebi in November

HDFC Mutual Fund has settled a case with market regulator Securities and Exchange Board of India (Sebi). The fund house and HDFC Trustee Company paid a combined settlement amount of Rs 37.9 million. In April, Sebi had initiated adjudication proceedings against HDFC MF and HDFC Trustee Company for alleged violation of mutual fund regulations.  Both the entities later submitted applications to settle the proceedings through the consent mechanism.

According to sources, some of the violations against HDFC MF included maturity of a security purchased by a scheme exceeding the maturity of the scheme; total expense ratio calculation for direct and