HSBC Asset Management (India) Pvt Ltd and four of its trustees have paid Rs 23.92 lakh jointly to the Securities and Exchange Board of India to settle a show-cause notice issued in connection to the use of funds of one scheme by another scheme of the mutual fund.
Jasmine Batliwala, Nani Javeri, T.C. Nair, and Ho Wai Fun were the trustees named in the settlement order issued by the Securities and Exchange Board of India (SebiI) on Monday.
According to Sebi’s show-cause notice dated August 4, the asset management company which is the investment manager of HSBC India Mutual Fund, did not have appropriate controls to prevent the use of funds of one scheme by another scheme of the mutual fund.
This was in violation of the Mutual Fund Regulations prohibiting the use of funds or securities of one scheme by another scheme in a mutual fund.