Axis AMC Axis MF Trustee pay Rs 16.57 lakh to settle case with Sebi

New Delhi, Nov 26 (PTI) Axis Asset Management Company (Axis AMC) and Axis Mutual Fund Trustee on Tuesday settled with markets regulator Sebi a case related to an alleged violation of mutual fund norms by paying Rs 16.57 lakh.
    Axis AMC is the investment manager of Axis Mutual Fund.
    The SCN was issued to Applicant 1 (Axis AMC) as it has incurred the excess expenses of the mutual fund scheme, thereby allegedly violating the Sebi rules, whereas Axis Mutual Fund Trustee (applicant 2) by not ensuring the compliance of Applicant 1 with the Mutual Fund regulations, Sebi said in the order.
    The order came after the applicants proposed to settle the instant proceedings initiated against them, without "admitting or denying the findings of facts and conclusions of law".
    The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against the Axis AMC for the alleged violation of Sebi rules and against the Axis Mutual Fund Trustee Ltd for the alleged violation of Mutual Funds rules.
    Thereafter, the markets watchdog issued a show cause notice on March 22, 2024, to the applicants for the alleged violations.
    "In view of the acceptance of the settlement terms and the receipt of the settlement amount by Sebi, the instant adjudication proceedings initiated against the applicant vide SCN dated March 22, 2024, is disposed of in terms of the settlement regulations," Sebi's adjudicating officer Barnali Mukherjee said in the order.
    Axis AMC and Axis Mutual Fund Trustee applied to settle the proceedings that may be initiated against it for allegedly violating the market norms.
    Pursuant to the receipt of the settlement application, the applicants proposed revised settlement terms, wherein they will pay collectively Rs 16.57 lakh as the settlement amount.
    The revised terms proposed by the applicants were cleared by the Sebi's High Powered Advisory Committee (HPAC), which recommended the matter be settled.
    After remitting the settlement fee of Rs 16.57 lakh, Axis AMC and Axis Mutual Fund Trustee settled the case with Sebi.

(This story has not been edited by THE WEEK and is auto-generated from PTI)