Canara Robeco AMC pays Rs 84.82 lakh to Sebi to settle allegations of violations of MoF regulations

Canara Robeco Asset Management Company has paid over Rs 84.82 lakh in a settlement with market regulator Sebi over alleged violations of MoEF regulations.

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

The regulator issued a notice to AMC asking why an investigation should not be initiated or a penalty imposed. Pending the conclusion of the resolution proceedings, AMC has elected to resolve the proceedings without admitting or denying the findings of fact or conclusions of law.

The show notice listed alleged violations of Art. 38 of the Mutual Funds Regulations, which concerns the prohibition of promising guaranteed returns; Clause B of the Sebi Circular dated December 12, 2003, which deals with the number of investors to be availed by the scheme and the maximum percentage share that any investor can hold in the corpus of the scheme; Art. 48 section 2 of the Ministry of Finance Regulations (which relates to the frequency of calculation of net asset value and its disclosure) in connection with Sebi circulars dated February 9, 2001 and March 29, 2006; Clause 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 relates to updating the Memorandum of Key Information and Simplification of the Offer Document of MoF Schemes); and Clause D of the Sebi circular dated October 22, 2018 (which deals with disclosure of program results).