SEBI Adjudicating Officer, Soma Majumdar noted that the interests of the of the investors were affected negatively on account of the infractions on the part of the senior officials whose main duty was to ensure that the interest of the unit holders is protected while making sure that the mutual fund complies with all the regulatory requirements of SEBI.
“It is imperative for the Trustee and the persons at the helm of affairs viz., MD, CIO, CO and the Fund Managers at all times, to act diligently and faithfully in the best interest of the unitholders. Infirmities in their conduct and any non-compliance or deviation from the regulatory requirements, would derail the trust imposed by the unitholders in the Mutual Fund and threaten the very structure of this industry. Therefore, I am of the view that appropriate penalty should be imposed on Noticees, given the gravity of the violations established against each of the Noticees, which would act as a deterrent for the Noticees and others”, the SEBI order stated.
Source: Barandbench
