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SEBI has imposed a fine of Rs.16 lakh on Edelweiss AMC, Radhika Gupta, CEO, Edelweiss AMC and Trideep Bhattacharya, CIO, Equities, Edelweiss AMC for not staying true to label in managing one of its MF schemes.
While SEBI imposed a fine of Rs.8 lakh on Edelweiss AMC, it has fined both the individuals with Rs.4 lakh each.
SEBI found that the fund house held more than 30 stocks in its focused fund Edelweiss Focused Equity Fund.
The fund house kept 31 stocks for 62 days, 32 stocks for 12 days and 33 stocks for 14 days. This means the scheme violated the SEBI norms for 88 days.
According to the scheme’s mandate, it can keep up to 30 stocks across market capitalization.
SEBI has asked the fund house to pay this penalty within 45 days.
