The Securities and Exchange Board of India (Sebi) on Friday said it has disposed of charges against L&T Mutual Fund and its former officials on violation of norms during inter-scheme transfers between April 2017 and June 2018.
The closure of the case came after the fund house and its former officials applied for settling the case with Sebi by paying ?1.15 crore. Each of the former officials each paid ?14.6 lakh and the fund house paid ?57 lakh as part of the settlement proceedings.
Sebi’s observations were that the fund house had failed to ensure that the transfer of securities from one scheme to another be allowed only if such transfers are done at the prevailing market price. More important, the transferred securities were in conformity with the investment objective of the scheme.
In addition, Sebi’s adjudicating officer made observations that the fund house failed to ensure that the valuation of investments should be based on the principles of fair valuation, reflecting the realisable value of the assets and through appropriate valuation policies.
“The applicants proposed to settle the instant proceedings initiated against them, without admitting or denying the findings of fact and conclusions of law, and filed settlement applications with Sebi,” said the order.