To avoid Sebi action, HDFC AMC pays Rs 4 cr to settle Essel case

Impact on FMP investors from 'standstill' pact with Essel group put fund house in scrutiny

HDFC Asset Management Company (AMC) has paid Rs 4 crore to the Securities and Exchange Board of India (Sebi) to settle the case pertaining to the fund house’s exposure to Essel group companies in its fixed maturity plans (FMPs).

“The High-Powered Advisory Committee in its meeting held on March 02, 2020 considered the proposed settlement terms by the applicants and recommended the case for settlement upon payment of Rs. 4,20,46,420 towards the settlement terms,” the Sebi order read.

The MF industry had come under regulatory scrutiny over entering into standstill agreement with Essel group promoters last year.

The regulator