Finance

UTI AMC under Sebi scanner for possible violation of investment regulation, says report

Updated : December 23, 2019 11:46 AM IST

A probe by Sebi revealed that UTI fund had purchased government securities at a time when the foreign limits applicable were fully utilized.

UTI had also made incorrect statements with depositories to obtain a category II FPI licence.

The Securities and Exchange Board of India has sent a show-cause notice to UTI Asset Management Company in connection with an investigation into UTI’s India Debt Opportunities Fund (IDOF), reported The Economic Times, citing sources.

Sebi is probing UTI AMC over possible violation of investment regulations, noted the report.

“UTI received a show-cause notice from Sebi in October and has replied to it. The matter is pending with the adjudication officer of Sebi,” a source was quoted as saying in the report.

The development, the report said, comes after a probe by Sebi revealed that UTI fund had purchased government securities at a time when the foreign limits applicable were fully utilized. A source further told the media that UTI had also made incorrect statements with depositories to obtain a category II FPI licence.

According to the report, India Debt Opportunities Fund, managed by UTI International, was given category II FPI license by Sebi on grounds that it had at least 20 investors, an assumption which a later probe by Sebi found to be untrue.

UTI AMC last week filed draft DRHP with Sebi for initial public offering (IPO) to raise a little over Rs 3,000 crore.

UTI AMC under Sebi scanner for possible violation of investment regulation, says report

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