In case of violation of the new provisions, Sebi may pass an order suspending the launch of any scheme of a mutual fund for a period not exceeding one year and forfeit the amount invested by an asset management company in any of its schemes.
The statement from the minister assumes significance as Kerala, the only communist-ruled state in the country now, is known for its sweeping public welfare measures that almost match the best-in-class models in the Scandinavian countries.