The Securities and Exchange Board of India (SEBI) has fined Nippon Life India Asset Management Limited Rs 2 lakh and Nippon Life India Trustee Limited Rs 1 lakh for violating rules about how they handle scheme expenses.
SEBI found that Nippon Life India AMC was paying more expenses from its own funds instead of charging these costs to the investment schemes, which is against the rules. According to a SEBI rule from October 2018, all expenses related to investment schemes must be paid from the scheme’s funds, not from the AMC’s own money or any other associated entity.
This issue came to light during a special review by SEBI, which revealed that in five exchange-traded funds (ETFs), Nippon Life India AMC charged less to the schemes than the actual costs, covering the rest from its own funds. This was found to be a violation of SEBI’s guidelines.
SEBI’s adjudicating officer, Barnali Mukherjee, issued a 20-page order stating that the fines are appropriate for the violations committed. Nippon Life India AMC and the trustee must pay the fines within 45 days of receiving the order.
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