New Delhi : Market regulator Sebi has found large-scale violations in several schemes of select mutual fund houses where norms regarding minimum 20 investors and maximum 25 per cent single investor exposure have been breached repeatedly, reports PTI.
These fund houses have been asked by Sebi to immediately take redressal measures, failing which penal actions can be taken, a senior official said. Industry executives have also confirmed such directions from Sebi.
As per the norms, every mutual fund scheme needs to have a minimum of 20 investors, while one single investor can not account for more than 25 per cent of total assets managed by that scheme.
Sebi found that many schemes have been repeatedly breaching these norms, especially during the course of a quarter. Some investors put large amount of money in a scheme and withdraw the same at a later stage to meet quarter-end norms, while many schemes were non-compliant on full quarter basis as well.
Industry body AMFI has also been asked to get into the matter and do the needful. Currently, there are about 45 fund houses in the country, which together manage assets worth over Rs 9 lakh crore.