Invesco AMC, its CEO, others settle case with Sebi
Saurabh Nanavati, and four others have settled a case of alleged violation of mutual fund and portfolio management services regulations with market regulator Securities and Exchange Board of India (Sebi) by paying ₹4.98 crore as settlement amount.
The case relates to an inspection of mutual funds and portfolio management services (PMS) activities of Invesco Asset Management for the period between October and November 2021.
Following its inspection and based on its findings, Sebi issued show-cause notices to the fund house and its trustees on August 9, 2023.
«That there was no clear segregation of activities and Chinese wall between Portfolio Management activities and Mutual Fund activities of IAMI (Invesco Asset Management India),» Sebi alleged in its show cause notice.
«There was no adequate infrastructure, or manpower available with the portfolio manager for effectively discharging the activities of a portfolio manager. PMS arm of IAMI had not maintained an arms-length relationship with Invesco Mutual Fund arm by clearly segregating its activities as a portfolio manager/investment adviser from Mutual Fund Activity,» Sebi said.
The regulator further said: «That inter scheme transfers were executed and there were movements of securities / pre-arranged trades /layered trades between schemes of Invesco MF and PMS Advisory in violation of the provisions of SEBI (Mutual Funds) Regulations and it is alleged that the said scheme of things is 'unfair trade practice'.»
Invesco Asset Management and its key managerial
