New Delhi: The Securities and Exchange Board of India (Sebi) has sent notices to mutual fund companies that defaulted on Fixed Maturity Plan payments, according to media reports. SEBI has taken action on mutual fund on several issues that occurred in the recent past. SEBI action is on those mutual funds which defaulted on fixed maturity plan scheme on the due date.
Subsequently, they increased the timeline of payment of fixed maturity plan with the consent of unitholders. However, the regulator has asked mutual fund companies the format of taking consent of unitholders in increasing timeline of fixed maturity plan,” Moneycontrol reported quoting sources. Another violation of SEBI norms is said to have taken place in the case of some FMPs that just matured. As per SEBI rules, an FMP must invest in debt securities that mature in line with the FMP.
