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The Securities and Exchange Board of India (Sebi) has issued 50 warning letters to mutual funds (MFs) in the past three years for violation of norms. Action has been taken against five entities.
Besides, adjudication proceedings are underway in seven cases and settlement has been reached via consent mechanism in five other cases, minister of state for finance, Namo Narain Meena, informed the Rajya Sabha in a written reply on Tuesday.
"In 2010-11, 2011-12 and in 2012-13 (up to February), Sebi had issued 30, 14 and six warning letters, respectively to MFs which were found in violation of the Sebi (Mutual Funds) Regulations," he said.
Additionally, while the regulator has not issued any deficiency letters in the current financial year, 26 and six such letters were issued in 2010-11 and 2011-12, respectively. "In the last two and the current year, five entities have been prohibited from buying, selling or dealing in securities directly or indirectly, till further orders and required to deposit the illegitimate gain identified in the investigations in an escrow account till further orders," Meena said.
