Sebi fines LIC, SBI, BoB for not cutting stake in UTI MF below 10%

LIC, SBI, and BoB did not bring stake below 10% by March 2019 in accordance with rules

The Securities and Exchange Board of India (Sebi) on Friday imposed a penalty of Rs 10 lakh each on Life Insurance Corporation of India (LIC), State Bank of India (SBI) and Bank of Baroda (BoB) for failing to reduce their stake in UTI Mutual Fund (MF) below 10 per cent within the stipulated time.

The regulator passed separate orders against the three state-owned firms for non-compliance of Regulation 7B of Sebi MF Regulations. Under the said regulation, no sponsor of an MF  is allowed to hold more than 10 per cent of any other mutual fund or a trustee firm.

LIC, SBI