Sebi has imposed penalties totaling more than Rs 32 crore on ISSL, AFSPL, and three individuals for lapses in connection with the alleged fraudulent transfer of mutual fund units of three companies.
Sebi has imposed penalties totaling more than Rs 32 crore on IL&FS Securities Services Ltd (ISSL), Allied Financial Services Pvt Ltd (AFSPL), and three individuals for lapses in connection with the alleged fraudulent transfer of mutual fund units of three companies.
Besides, the watchdog has passed various directions against them.
The regulator has passed two separate orders, dated July 2, against ISSL, and AFSPL and its three directors after it carried out a detailed investigation into the matter for the period from February 20, 2017, till February 8, 2019.
ISSL is a clearing member while AFSPL is a depository participant.
While imposing a fine of Rs 26 crore on ISSL, a clearing member, and also passing certain directions, Sebi noted that its order would be subject to any order passed by the Supreme Court.
Also, enforcement of the liability and the order would be subject to the orders of the National Company Law Tribunal and the National Company Law Appellate Tribunal (NCLAT).
These directions come against the backdrop of the entire IL&FS Group, including ISSL, undergoing a resolution process. In January 2021, Sebi held that it has the jurisdiction to determine the monetary and non-monetary liabilities of ISSL in case there are violations and the order was also upheld by the Securities Appellate Tribunal (SAT) while ISSL's appeal is pending before the Supreme Court.
No comments:
Post a Comment