The Securities and Exchange Board of India (Sebi) has imposed a total fine of ₹16 lakh on Edelweiss Asset Management Ltd, its CEO Radhika Gupta, and fund manager Trideep Bhattacharya for breaching mutual fund regulations.
Edelweiss Asset Management was fined ₹8 lakh, while Gupta and Bhattacharya each faced penalties of ₹4 lakh, as per Sebi’s order. They are required to pay the fines within 45 days.
During a comprehensive review of whether focused funds adhered to their declared objectives, Sebi found that the Edelweiss Focused Equity Fund (EFEF) violated the rule limiting investment to a maximum of 30 stocks on 88 occasions. These infractions were noted during the months of November 2022 through February 2023.
Sebi’s order stated that Edelweiss Asset Management failed to ensure that the investment of funds adhered to mutual fund regulations. It further indicated that Gupta, as CEO, and Bhattacharya, as the fund manager, did not take the necessary steps to align the funds with the scheme’s investment objectives.
This ruling follows a recent case where former fund manager Abhishek Gupta settled with Sebi for ₹19.5 lakh after being accused of similar violations regarding the investment objectives of the funds.
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