Canara Robeco AMC pays Rs 84.82 lakh to Sebi to settle alleged violations of MF regulations

Canara Robeco Asset Management Company has paid over Rs 84.82 lakh to settle alleged violations of MF regulations with market regulator Sebi.

Through an order dated June 11, the Securities and Exchange Board of India (Sebi) informed that it has initiated judgment proceedings against the AMC for alleged violation of mutual fund regulations.

The regulator had sent a show cause notice to the CMA asking why an investigation should not be held or a penalty should not be imposed. Pending arbitration proceedings, the CMA has chosen to settle the proceedings without admitting or denying the findings of fact and conclusions of law.

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The notice of presentation listed alleged violations of Regulation 38 of the Mutual Funds Regulations, which deals with the prohibition on promising guaranteed returns; Clause B of a Sebi circular dated December 12, 2003, which deals with the number of investors a scheme must have and the maximum percentage each investor can hold in the corpus of the scheme; Regulation 48(2) of the MF Regulations (which deals with frequency of calculation of net asset value and its disclosure) read with Sebi circulars dated February 9, 2001 and March 29, 2006; Article III of the Sebi circular dated October 6, 2017 (which deals with categorization and rationalization of schemes); Clause No. 5 of the Sebi circular dated May 23, 2008 (which deals with updating the key information memorandum and simplification of the offer document for MF plans); and clause D of a Sebi circular dated October 22, 2018 (which deals with disclosure of program performance).

The AMC filed a settlement request dated August 28, 2023. After meeting the Sebi internal committee on December 12, 2023, the AMC proposed revised settlement terms via an email dated December 22, 2023.

The high-level advisory committee, in its meeting held on March 4, 2024, considered the proposed settlement terms and recommended that the matter may be settled upon payment of ₹84,82,500 (rupees eighty-four Lakhs eighty-two thousand five hundred only) by the AMC. .