Groww’s AMC Settles SEBI Case with Rs 9 Lakh Payment
- ByStartupStory | July 2, 2024
Groww Asset Management Ltd (formerly Indiabulls Asset Management Company Ltd) and its trustee have reached a settlement with the Securities and Exchange Board of India (SEBI), concluding a case involving alleged regulatory violations. The settlement, totaling Rs 9 lakh, follows an application where Groww Asset Management Company and Groww Trustee Ltd (previously Indiabulls Trustee Company Ltd) neither admitted nor denied the findings of fact.
In its settlement order issued on June 28, SEBI stated, “It is hereby ordered that any proceedings that maybe initiated for the violations…are settled in respect of the applicants.”
The applicants explained that the violations occurred between April 2020 and March 2022, relating to the payment of certain scheme-related expenses from the AMC’s books rather than from the respective schemes. SEBI’s rules stipulate that such expenses, including distributor commissions, must be exclusively paid from the scheme’s funds within regulatory guidelines.
The entities underwent a change in control due to their acquisition by Nextbillion Technology Pvt Ltd, leading to their rebranding as Groww Asset Management and Groww Trustee effective from May 3, 2023.
In response to the settlement, Groww Asset Management and Groww Trustee issued a statement: “We are committed to complying with all regulatory requirements and have taken corrective actions to ensure adherence to SEBI’s guidelines moving forward.”
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