Sebi inspecting JPMorgan MF’s books
Market regulator Sebi has started inspecting the books of the troubled JPMorgan Mutual Fund and is also looking into its processes to see what went wrong with two of the fund house’s schemes – JPMorgan India Treasury Fund and JPMorgan India Short Term Income Fund. Late on August 28, the fund house restricted redemption in these two schemes to just 1% of its total outstanding units, but had given selective exits to three large corporate investors.
“We are looking at if the fund house had followed all the rules before restricting redemptions from the scheme,” said a Sebi official. “Sebi officers are already on the job for the last few days,” the official said.
Sebi received a mail from JPMorgan MF late on August 28, a Friday, about its decision to restrict redemptions from the two schemes. Sebi has a 5-day work week and is closed on Saturday and Sunday. The rule is that for any fund house to take any such decision, the boards of directors of the asset management company (AMC) and trustee should agree. And after the two crucial approvals are in place, the fund house has to inform Sebi well in advance before imposing redemption restrictions.
Source: The Times of India – Sebi inspecting JPMorgan MF’s books
Related Posts
India’s Market Regulator Warns Of Terrorism-Tainted Funds
Brokers in India requested to set a floor to brokerage rates but SEBI has rejected it
Billionaire Banned From Markets Increases DLF Risk- Securities and Exchange Board of India eases short selling norms
- Brokers under SEBI’s scanner for moving investors’ money abroad
