Sebi launches proceedings against ICICI Prudential MF, to probe officials

Sources say Sebi's analysis of investment pattern of ICICI Prudential AMC in the IPO points towards several lapses

The country’s largest mutual fund (MF) house ICICI Prudential Asset Management Company (AMC) may not escape simply by compensating its investors in the ICICI Securities fiasco. Sources say market regulator Securities and Exchange Board of India (Sebi) has launched adjudication proceedings against the fund house to further probe misuse of investors’ money.

ICICI Prudential AMC had placed a bid of Rs 6.4 billion in the initial public offering (IPO) of group firm ICICI Securities, in which parent ICICI Bank was looking to divest around 24 per cent stake.

As the IPO was falling short of the minimum subscription, ICICI Prudential