SEBI issues consent order against JP Morgan MF

The Securities and Exchange Board of India (SEBI) has passed a consent order in the matter of J P Morgan Mutual Fund, whereby the fund house will pay Rs.91.8000000 as settlement charges and be barred from launching new schemes for a period of one year. Incidentally, Edelweiss Asset Management acquired JP Morgan's mutual fund business in March 2016. JP Morgan had entered the Indian mutual funds business in 2007. According to the order, the fund house failed to comply with certain provisions of the mutual fund regulations as laid down by the capital market regulator. The SEBI investigation found that the fund house launched a particular scheme after the expiry of the scheme information document (SID). Further, the offer document contained misleading and incorrect scheme name and investors were allotted units under the incorrect scheme name, says the SEBI order. While the SEBI probe was on, the fund house filed an application for consent settlement. The consent mechanism is like an out-of-court process through which SEBI settles cases in the form of penalty and/or debarment. The case is settled without any admission or denial of guilt by the alleged defaulter.