For Quick Alerts
For Daily Alerts

Sebi sent 50 warning letters to MFs

Sebi sent 50 warning letters to MFs
Capital market regulator Sebi has issued 50 warning letters to mutual funds (MFs) in the past three years for violations of norms and actions have been taken against five entities.

Besides, adjudication proceedings are underway in seven cases and settlement has been reached through consent mechanism in five other cases, Minister of State for Finance Namo Narain Meena informed the Rajya Sabha in a written reply today.

"In 2010-11, 2011-12 and in 2012-13 (up to February), the Securities and Exchange Board of India (Sebi) has issued 30, 14 and 6 warning letters respectively to mutual funds who 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 fiscal, 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.

"Sebi has informed that it takes administrative action by way of issuing warning and deficiency letters against Mutual Funds found to have committed irregularities," Meena said.

He further said, enforcement actions such as direction, adjudication, enquiry etc can be initiated under Sebi's norms, depending upon the severity of the violation observed.

In reply to another question related to mis-selling of insurance policies through Internet, Meena said 52 complaints have been received by insurance regulator IRDA since 2008 and 50 of those have been already resolved.


Read more about: sebi mf
Story first published: Tuesday, March 12, 2013, 16:52 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more