Sebi levies Rs 16 lakh fine on Edelweiss Asset Management, 2 senior officials for MF rule violation
Capital markets regulator Sebi fined Edelweiss Asset Management, CEO Radhika Gupta, and fund manager Trideep Bhattacharya a total of Rs 16 lakh for mutual fund rule violations. Sebi observed rule infractions in the Edelweiss Focused Equity Fund over several months, prompting orders for penalties to be paid within 45 days.
- Country:
- India
On Friday, the capital markets watchdog, Sebi, imposed penalties amounting to Rs 16 lakh on Edelweiss Asset Management Ltd, CEO Radhika Gupta, and fund manager Trideep Bhattacharya due to breaches of mutual fund regulations.
An individual fine of Rs 8 lakh was placed on Edelweiss Asset Management, while Gupta and Bhattacharya each received penalties of Rs 4 lakh, as outlined in a Sebi order. The directives demand settlement of these amounts within a 45-day period.
In its evaluation examining whether focused funds stayed true to their labels, Sebi found that the Edelweiss Focused Equity Fund (EFEF) contravened the stipulation of investing in a maximum of 30 stocks on 88 occasions. These transgressions were detected across November 2022 to February 2023. Sebi's findings indicated negligence by Edelweiss Asset Management, Gupta, and Bhattacharya in their fiduciary responsibilities under the mutual fund regulations.
(With inputs from agencies.)