Invesco India, CEO, others pay Rs 5 cr to settle regulatory violation case with Sebi
Asset Management India, its CEO Saurabh Nanavati and four others on Wednesday settled with markets regulator Sebi a case on alleged non-segregation between the mutual fund activities and portfolio management activities of the company after payment of nearly Rs 5 crore. The four others were Sujoy Das, Nitish Sikand, Krishna Cheemalapati and Suresh Jakhotiya.
The order came after the six entities filed settlement applications with the Sebi in October 2023, proposing to settle the pending proceedings through a settlement order «without admitting or denying the findings of fact and conclusions of law».
After the six entities together remitted Rs 4.98 crore, Sebi passed a settlement order, saying «the instant proceedings initiated against the applicants for the...violations, vide show cause notice dated August 9, 2023, are disposed of ».
In its show cause notice, Sebi alleged that there was no clear segregation of activities between portfolio management and mutual fund activities of Invesco Asset Management India Pvt Ltd (IAMI).
«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 noted.
Also, it was alleged that there was no adequate infrastructure, or manpower available with the portfolio manager for discharging the activities of a portfolio manager.
Further, Invesco Asset Management India and its key managerial personnel have allegedly failed to ensure that
