HDFC AMC has paid Rs.4.20 crore to SEBI for reaching a settlement on certain alleged regulatory non-compliances regarding its investments in Essel Group companies.
The settlement order on SEBI website shows that HDFC AMC had proposed to settle, “without admitting or denying the findings of fact and conclusions of law” in the Essel group matter.
While proposing the settlement, the AMC said that they have already compensated the unit holders of the affected mutual fund schemes for Rs.4.46 crore. Further, there are no ‘subsisting complaints by the unit holders’ with regard to this matter in respect of the various mutual fund schemes of HDFC AMC.
The SEBI order shows that HDFC AMC proposed that the settlement amount of Rs. 4.20 crore would be paid out from the funds of the AMC and that the liability would not be passed on to the unit holders.
After considering the settlement proposal from HDFC AMC, SEBI's high-powered advisory committee recommended the case for settlement. The settlement amount was remitted on March 21, 2020, the order read.
