Sebi fines SBI, LIC, BoB over MFs

TNN
Mumbai: Markets regulator Sebi has fined banking main SBI, life insurance coverage main LIC and PSU lender Bank of Baroda Rs 10 lakh every for holding greater than 10% share in UTI Mutual Fund along with the holding majority stake in fund homes promoted by them. Sebi mentioned that in March 2018, it had amended the holding norms for fund homes.
Subsequently, it had given these entities a 12 months to pare their stake in UTI MF. However, these entities nonetheless maintain over 18% every within the fund home, and therefore the penalty imposed on these entities.
SBI, LIC and BoB, together with Punjab National Bank have been requested to carry 25% every in UTI MF when the erstwhile Unit Trust of India was bifurcated. PNB has exited the fund administration enterprise, whereas the opposite three maintain majority stakes in separate fund administration operations. In 2010, US-based world fund administration main T Rowe Price had purchased 26% in UTI MF, subsequent to which the holdings of the 4 entities have been diminished to 18.24%.
However, all of the 4 PSU entities at all times maintained that they have been holding the stakes on behalf of the federal government for the reason that bifurcation of erstwhile UTI.

Source link