SBI, BoB face Rs 10 lakh fine by Sebi for violating mutual fund norms
New Delhi, August 17
Market regulator Sebi has slapped a fine of Rs 10 lakh each on state-run lenders SBI and Bank of Baroda for non-compliance with its mutual fund norms, the banks informed bourses on Monday.
Sebi has fined Rs 10 lakh (under procedure for holding inquiry and imposing penalties) on the bank for non-compliance of directions issued in case of holding, more than prescribed limit, equity shares of UTI AMC Ltd and UTI Trustee Company Pvt Ltd, State Bank of India (SBI) said in a regulatory filing.
Bank of Baroda in a separate filing to bourses said, “The Securities and Exchange Board of India (Sebi) in exercise of power…has imposed penalty aggregating to Rs 10 lakh on the bank for non-compliance of Regulation 7B of Sebi (Mutual Fund Regulations), 1996 with the directions issued by Sebi in the case of holding, more than prescribed limit, equity shares of UTI Asset Management Company Ltd and UTI Trustee Pvt Ltd.”
Both the lenders said whole time member of Sebi had earlier directed them to comply with the guidelines on or before December 31, 2020.
SBI shares closed 1.73 per cent down at Rs 193.05 apiece on BSE. Bank of Baroda closed 0.11 per cent up at Rs 46.15. — PTI
