SEBI Slaps Fine On Nippon Life India Asset And Trustee For Charging TER To AMC Books
SEBI Slaps Fine On Nippon Life India Asset And Trustee For Charging TER To AMC Books
The fine is to be paid within 45 days
The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs.3 lakh on Nippon Life India Asset Management Ltd and Nippon Life India Trustee Ltd for charging total expense ratio (TER) to asset management company books.
While Nippon Asset was fined Rs.2 lakh, Nippon Trustee must pay Rs.1 lakh within 45 days.
SEBI observed from the TER structure of Nippon Asset that in five Exchange-Traded Funds (ETFs) it charged less expense on the schemes against the actual amount, violating the norms.
The markets regulator added, "The 22 October 2018 regulations required that all scheme-related expenses shall be paid from the scheme only within the regulatory limits and not from the books of the AMC, its associate, sponsor, trustee or any other entity through any route.”
