New Delhi : A seven-year-old case of front running has come back to haunt HDFC Asset Management Company, which runs the country’s top fund house HDFC MF, with regulator Sebi seeking explanation on alleged violations of various capital market regulations. A show-cause notice has been issued by Sebi to HDFC Asset Management Company and other entities for alleged violations of regulations and code of conduct governing mutual funds, brokerage firms and portfolio management, among others.
When contacted, the fund house said it is in the process of resolving the issues with Sebi and the concerned dealer, whose alleged misconduct was at the core of the case, was no longer with the organisation.
“This issue relates to the same alleged misconduct of the same dealer, Nilesh Kapadia who is no longer with the organisation since June 2010. We are in the process of resolving the issues with the regulator in accordance with SEBI rules,” an HDFC AMC spokesperson told PTI.