HSBC Asset Management And Trustees Settle SEBI Charges Over Fund Mismanagement With Rs 23.92 Lakh Payment
HSBC Asset Management (India) Pvt Ltd, along with four of its trustees, has resolved a regulatory issue with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of Rs 23.92 lakh. The trustees involved in the settlement are Jasmine Batliwala, Nani Javeri, Ho Wai Fun, and Dr. TC Nair. The issue originated from allegations that HSBC AMC did not...
HSBC Asset Management (India) Pvt Ltd, along with four of its trustees, has resolved a regulatory issue with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of Rs 23.92 lakh.
The trustees involved in the settlement are Jasmine Batliwala, Nani Javeri, Ho Wai Fun, and Dr. TC Nair.
The issue originated from allegations that HSBC AMC did not have adequate controls to prevent the funds of one scheme from being used by another scheme within the mutual fund. This practice is a violation of SEBI's Mutual Fund Regulations and a circular dated December 10, 2021. The trustees were also implicated for failing to implement these necessary controls.
Upon receiving the showcause notice, HSBC AMC and the trustees opted to settle the matter by filing settlement applications.
Initially, the internal committee of SEBI reviewed the applications on February 13, 2024. During this review, it noted that HSBC AMC took corrective measures post the alleged violations. Consequently, the committee proposed a monetary settlement amounting to Rs 23.92 lakh, which was to be paid jointly by all the entities involved.
Subsequently, the proposed terms were reviewed by SEBI's High-Powered Advisory Committee (HPAC). The HPAC approved the settlement terms, which were then accepted by the Panel of Whole Time Members (WTMs).
Following these approvals, SEBI issued a Notice of Demand to the applicants.
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