 "Groww Asset Management, trustee settle case with Sebi; pay Rs 9 lakh")
Groww Asset Management Ltd (formerly known as Indiabulls Asset Management Company Ltd) and its trustee have settled with markets watchdog Sebi a case pertaining to alleged violation of regulatory norms after paying Rs 9 lakh.
This came after the applicants -- Groww Asset Management Company and Groww Trustee Ltd (earlier known as Indiabulls Trustee Company Ltd) -- proposed to settle the alleged violation by "neither admitting nor denying the findings of fact".
"It is hereby ordered that any proceedings that maybe initiated for the violations...are settled in respect of the applicants," the Securities and Exchange Board of India (Sebi) said in its settlement order passed on June 28.
The applicants have submitted that on account of change in control of Indiabulls Asset Management Company and Indiabulls Trustee due to the acquisition of these entities by Nextbillion Technology Pvt Ltd, the entities are now known as Groww Asset Management and Groww Trustee with effect from May 3, 2023.
The applicants, in the settlement application, stated that during April 2020 to March 2022, certain scheme-related expenses were being paid by the AMC and were not paid from the schemes. This resulted in the AMC bearing the expenses towards running their schemes thereby violating Sebi's rule.
The Sebi's rule mandates that all scheme-related expenses, including commission paid to distributors, need to necessarily be paid from the scheme only within the regulatory limits and not from the books of the AMC, its associate, sponsor, trustee or any other entity through any route.