IDBI Mutual Fund has paid a sum of Rs. 90.47 lakh to settle the probe initiated by SEBI over its investment in commercial papers (CPs) of Bilt Graphic Paper Products Ltd. (BGPPL), a subsidiary of Ballarpur Industries. The issuer had not paid the principal amount on maturity to the fund house.
IDBI came under the scanner of SEBI over its alleged violations of multiple mutual fund guidelines including failure in investment due diligence, failure in fair valuation of securities and failure to insure fair treatment to all investors.
In its settlement order, SEBI said that the fund house has proposed to SEBI to settle the proceeding without admitting or denying the findings of fact of law through a settlement order.
However, the market regulator has clarified that SEBI may initiate the proceedings if the fund house fails to comply with settlement order or violates the settlement order.
