INSUBCONTINENT EXCLUSIVE:
Union KBC Asset Management Company, its chief executive G Pradeepkumar and two others on Wednesday settled proceedings with Sebi in
connection with alleged violation of mutual fund norms after paying over Rs 50 lakh towards settlement fee.
Sebi agreed to settle proposed
adjudication proceedings in the case, pertaining to violation of the mutual fund norms, after it was approached by Union KBC AMC, Union
Mutual Fund, Union KBC Trustee Company and Pradeepkumar with a plea under the settlement regulations.
The settlement allows entities to
settle charges by paying a penalty without admission or denial of guilt.
In a settlement order passed on Wednesday, Sebi said it has
disposed of the adjudication proceedings initiated against the applicants -- Union KBC AMC, Union Mutual Fund and Union KBC Trustee Company
and Pradeepkumar.
It was alleged in the show cause notice that Union KBC AMC, Union Mutual Fund and Union KBC Trustee Company violated the
provisions of the code of conduct stipulated in mutual fund regulations, while Pradeepkumar allegedly failed to ensure that mutual fund
complies with all the norms.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceeding against the applicants
in April 2017.
Pending adjudication proceedings, the four entities had approached Sebi in May last year to settle the case on payment of
settlement charges.
Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of a total of Rs
37.31 lakh for Union KBC AMC, Union Mutual Fund and Union KBC Trustee Company and Rs 13.6 lakh for Pradeepkumar.
This was also approved by
the regulator's panel of whole-time members, following which they remitted the amount.
Accordingly, the regulator has disposed of the
adjudication proceedings initiated against the applicants.
It further said enforcement actions, including restoring or initiating the
proceedings, could be initiated if any representation made by them is found to be untrue.
