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JP Morgan Mutual Fund settles Amtek Auto case with SEBI

On Monday, Sebi in its consent order said that three entities of JP Morgan filed for settlement of thr case through consent mechanism in February 2016, without admission or denial of any wrongdoing.

By: ENS Economic Bureau | Mumbai | Updated: March 27, 2018 2:35:17 am

Sebi Monday passed a consent order allowing JP Morgan Mutual Fund, JP Morgan Asset Management India Pvt Ltd and JP Morgan Mutual Fund India Pvt Ltd to settle a case pertaining to the quality of its holdings in Amtek Auto by paying Rs 8.07 crore.

In 2015, a few rating agencies had failed to monitor the quality of Amtek Auto’s bonds and the quality of JP Morgan’s bond fund’s holdings—and brought on a redemption crisis in August 2015 when Amtek Auto was on the verge of defaulting on Rs 800 crore of bond repayments.

On Monday, Sebi in its consent order said that three entities of JP Morgan filed for settlement of thr case through consent mechanism in February 2016, without admission or denial of any wrongdoing.

“The enquiry proceedings initiated vide Show Cause Notice (SCN) dated December 10, 2015 had alleged violation of regulation 18(15A), 25(3), 25(16), 25(19) read with Clause 4, 6,8 and 9 of the Code of Conduct as specified in the Fifth Schedule and regulation 47 read with Clauses (a) and (c) of the Principles of Fair Valuation as specified in the Eighth Schedule of the SEBI (Mutual Fund) Regulations, 1996,” said the Sebi order.

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