Axis Asset Management Company (Axis AMC) and Axis Mutual Fund Trustee on Tuesday settled with markets regulator Sebi a case related to alleged violations of mutual fund norms by paying Rs 16.57 lakh. Axis AMC is the investment manager of Axis Mutual Fund.
The SCN was issued to Applicant 1 (Axis AMC) for incurring excessive charges in the mutual fund scheme, allegedly in violation of Sebi regulations, and Axis Mutual Fund Trustee (applicant 2) for not ensuring that Applicant 1 is in compliance with Sebi regulations . Mutual Fund Rules, Sebi said respectively.
The order came after the petitioners proposed to settle the actions initiated against them, without “admitting or denying the findings of fact and conclusions of law”.
The Securities and Exchange Board of India (Sebi) has initiated proceedings against Axis AMC for alleged violations of Sebi rules and against Axis Mutual Fund Trustee Ltd for alleged violations of Mutual Funds rules.
Thereafter, the market watchdog issued a show cause notice on March 22, 2024, to the petitioners for alleged infringement.
“Due to the acceptance of the settlement terms and receipt of the payment amount by Sebi, the proceedings initiated by the petitioner under the SCN dated March 22, 2024, are dismissed as per the terms of the agreement,” a Sebi judicial officer said. Barnali Mukherjee said respectively.
Axis AMC and Axis Mutual Fund Trustee have filed applications to settle the pending litigation for alleged violation of market norms.
Following the receipt of the compensation claim, the petitioners proposed revised terms of payment, under which they would pay a total of Rs 16.57 lakh as the payment amount.
The revised terms suggested by the petitioners were approved by Sebi’s High Power Advisory Committee (HPAC), which suggested that the matter be resolved.
After paying a settlement amount of Rs 16.57 lakh, Axis AMC and Axis Mutual Fund Trustee settled the case with Sebi.
