SEBI Slapped Penalty on Edelweiss Asset Management

SEBI, the capital markets regulator, has levied penalties totalling Rs 16 lakh on Edelweiss Asset Management Ltd, its CEO Radhika Gupta, and fund manager Trideep Bhattacharya for non-compliance with mutual fund regulations.

Edelweiss Asset Management was fined Rs 8 lakh, while Gupta and Bhattacharya were each penalized Rs 4 lakh. The regulator has ordered them to pay the penalties within 45 days.

SEBI’s Discovery

During a broader industry examination of focused funds, Sebi discovered that the Edelweiss Focused Equity Fund (EFEF) had exceeded the prescribed limit of 30 stocks for 88 days between November 2022 and February 2023.

Sebi’s order stated that Edelweiss Asset Management failed to ensure adherence to the fund regulations and that Gupta and Bhattacharya, as CEO and fund manager, respectively, were responsible for ensuring the fund’s investments aligned with its objectives.

In a related development, former Edelweiss Asset Management fund manager Abhishek Gupta recently settled a case with Sebi by paying Rs 19.5 lakh in settlement charges. Gupta was accused of violating mutual fund rules by failing to ensure that fund investments were aligned with their objectives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.