SBI, LIC and Bank of Baroda fined, charged with violation of SEBI rules
SEBI has imposed a fine of Rs 10 lakh on SBI, LIC and Bank of Baroda for violation of mutual fund rules.
Allegations of violation of mutual fund rules
SEBI fined 10-10 lakh rupees
Three public sector financial institutions SBI, LIC and Bank of Baroda have been fined Rs 10 lakh each. SEBI has imposed this penalty on the regulator regulating the stock market.
What is the whole matter
In fact, SEBI in its investigation found that SBI, LIC and Bank of Baroda are sponsors of SBI Mutual Fund, LIC Mutual Fund and Baroda Mutual Fund respectively. He holds more than 10-10 percent stake in these mutual funds.
Apart from this, LIC, SBI and BoB are also sponsors of UTI AMC. They have a separate 10% plus stake in the asset management company (AMC) and the trustee company of UTI MF. SEBI said that it is not in accordance with mutual fund regulations.
Rules were changed in 2018
Let us tell you that in March 2018, SEBI amended mutual fund regulations. Under this, if a shareholder or sponsor holds at least 10 percent stake in an AMC, it cannot hold 10 percent or more in any other mutual fund operating in the country.
Time till March 2019
According to Sebi, SBI, LIC and Bank of Baroda did not fulfill this imperative in the given time till March, 2019. However, these entities stated that the process of IPO for the sale of their stake in UTI AMC has been started and the process of stake sale in UTI Trustee Company is being finalized. These units have said that the IPO of UTI AMC will be completed by the end of September.
Meanwhile, GP Garg has taken over as executive director at SEBI. SEBI has given its information in a statement. GP Garg has held several important assignments since joining SEBI in January 1994. Garg has studied engineering, law and management.
