MUMBAI: Markets regulator Sebi has fined seven entities including the former CEO of JM Mutual Fund, its head of sales and some related entities for accruing illegal gains using insider information about sale of defaulted DHFL bonds by certain schemes of the fund house. The total penalty aggregated Rs 2.1 crore.
In mid-2020, some schemes of JM MF were holding bonds of DHFL which had then defaulted and hence were valued at zero in the books of those schemes.In July 2020, JM MF sold the bonds to A K Capital – a leading bond house in India – for about Rs 11.2 crore. Since the bonds were valued at zero till the sale, the net asset values of these schemes after this transaction jumped substantially.
In mid-2020, some schemes of JM MF were holding bonds of DHFL which had then defaulted and hence were valued at zero in the books of those schemes.In July 2020, JM MF sold the bonds to A K Capital – a leading bond house in India – for about Rs 11.2 crore. Since the bonds were valued at zero till the sale, the net asset values of these schemes after this transaction jumped substantially.
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