Morgan Mulls Options After Sebi Fine

Morgan Stanley Asset Management India Ltd is considering the options available before it with the Securities and Exchange Board of India (Sebi) slapping a fine of Rs 2 lakh on the AMC.

The company, in an official statement, said: "We have received the adjudication order from Sebi. Morgan Stanley treats compliance matters with utmost seriousness and we are going through the adjudication order carefully in order to consider the options available to us."

The market regulator had appointed an adjudicating officer against Morgan Stanley based on the findings of the inspection carried out by independent auditors into the affairs of the asset management company and also on the basis of the annual report of the fund for the year 1995-96.

 

The asset management company had been pulled up by Sebi on three counts. These include:

Undertaking activity similar to an asset management company for clients other than the Morgan Stanley Mutual Fund without the prior approval of Sebi;

The AMC also exceeded the five per cent investment ceiling norm;

Failure to deliver securities sold in the market.

"Accordingly," the Sebi release said, "the adjudicating officer has after considering the replies, other submissions made by the Fund and personal hearing and come to a conclusion that violations took place and hence levied a penalty of Rs 2 lakh on the Morgan Stanley AMC India.