The Securities and Exchange Board of India imposed a Rs 3 lakh penalty on Nippon Life India Asset Management Ltd. and Nippon Life India Trustee Ltd. for discrepancies in charging the total expense ratio to their asset management books.
Nippon Life India Asset Management was fined Rs 2 lakh, while Nippon Life India Trustee was fined Rs 1 lakh. Both entities have been instructed to pay the penalties within 45 days.
SEBI's examination revealed that Nippon Life India Asset Management charged less expense to five of its ETFs than the actual costs incurred, leading to an alleged violation of regulations by bearing excess expenses.
Further, the trustee did not ensure compliance by the fund house.
"The Noticee 1 (Nippon Life India Asset Management) by bearing excess expenses of the scheme from the books of the AMC has violated the provisions of ... SEBI circular dated Oct. 22, 2018, which requires that all scheme related expenses shall necessarily 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," the regulator said.
(With Inputs From PTI)
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