Sebi fines SBI, LIC, Bank of Baroda over Mutual Funds

MUMBAI: Markets regulator Sebi has fined banking major SBI, life insurance major LIC and PSU lender Bank of Baroda Rs 10 lakh each for holding more than 10% share in UTI Mutual Fund in addition to the holding majority stake in fund houses promoted by them. Sebi said that in March 2018, it had amended the holding norms for fund houses.
Subsequently, it had given these entities a year to pare their stake in UTI MF. However, these entities still hold over 18% each in the fund house, and hence the penalty imposed on these entities.
SBI, LIC and BoB, along with Punjab National Bank were asked to hold 25% each in UTI MF when the erstwhile Unit Trust of India was bifurcated. PNB has exited the fund management business, while the other three hold majority stakes in separate fund management operations. In 2010, US-based global fund management major T Rowe Price had bought 26% in UTI MF, subsequent to which the holdings of the four entities were reduced to 18.24%.
However, all the four PSU entities always maintained that they were holding the stakes on behalf of the government since the bifurcation of erstwhile UTI.