Sebi penalises LIC, BoB and SBI for failing to pare stake in UTI MF

IPO in the first week of September to ensure compliance

The Securities and Exchange Board of India (Sebi) on Friday imposed a penalty of Rs 10 lakh each on Life Insurance Corporation of India (LIC), State Bank of India (SBI) and Bank of Baroda (BoB) for failing to bring down their stake below 10 per cent in UTI Mutual Fund (MF) within the stipulated time period.

The market regulator passed separate orders against the three state-owned firms for non-compliance of Regulation 7B of Sebi MF Regulations. Under the said regulation, no sponsor of a mutual fund is allowed to hold more than 10 per cent shareholding of any other mutual fund