Invesco India Settles SEBI Case with ₹5 Crore Payment

Invesco Asset Management India, along with CEO Saurabh Nanavati and four others, has settled a case with SEBI, the market regulator, by paying nearly ₹5 crore. This settlement comes after the entities proposed to settle the case in October 2023 without admitting or denying the findings.

The settlement order was passed after the six entities collectively paid ₹4.98 crore. SEBI disposed of the proceedings initiated against them for alleged violations related to the segregation of activities between portfolio management and mutual fund activities.

SEBI’s show cause notice stated that there was no clear separation between the activities of Invesco Asset Management India Pvt Ltd (IAMI) as a portfolio manager and its mutual fund arm. It was also alleged that the portfolio manager lacked adequate infrastructure and manpower.

Furthermore, Invesco Asset Management India and its key personnel allegedly failed to ensure that investments were made in line with the objectives of the scheme and the interest of the unitholders.

These actions were deemed to be in violation of various rules and norms, including those related to mutual funds, portfolio managers, investment advisers, and the prohibition of fraudulent and unfair trade practices.

SEBI conducted inspections of mutual funds and portfolio management services of Invesco Asset Management (India) Private Limited in October–November 2021.

In recent developments, IndusInd International Holdings Ltd (IIHL) announced a partnership with Invesco, acquiring a 60% stake in Invesco Asset Management India. IIHL is a Mauritius-based investment holding company with investments in banking and financial services, including IndusInd Bank. Invesco Asset Management India is the Indian arm of the global investment management firm Invesco, managing over USD 1.6 trillion in assets.