SEBI has reportedly asked HDFC Mutual Fund to recall shares allotted to mutual fund distributors through pre IPO placement, said three people aware of the development.
Following this, the fund house has approached distributors through phone calls on Saturday. “On SEBI’s direction, we have recalled our pre IPO placement to distributors,” said a senior official of HDFC Mutual Fund.
Last month, the fund house allotted shares of Rs.150 crore to 140 distributors through private placement. HDFC AMC had reserved up to 7.2 lakh shares for its empanelled distributors.
Currently, the fund house has over 60,000 empanelled distribution partners across India.