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.
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