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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

Sundar Sethuraman  |  Mumbai 

HDFC MF
HDFC MF

HDFC Mutual Fund has settled a case with market regulator Securities and Exchange Board of India (Sebi). The fund house and paid a combined settlement amount of Rs 37.9 million. In April, had initiated adjudication proceedings against and 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 included maturity of a security purchased by a scheme exceeding the maturity of the scheme; total expense ratio calculation for direct and regular plans being lower than the commission paid to the distributors in certain schemes; error in the valuation of unlisted equity shares of a company; delay in crediting excess charges and failure to publish net asset values (NAVs) of certain schemes.

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

came out with an initial public offering (IPO) in July.

First Published: Tue, December 04 2018. 18:46 IST
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