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SEBI Wields Whip on Birla Sun Life

The AMC invited SEBI ire by going against the rules

Signalling a no tolerance regime for mutual funds, the Securities and Exchange Board of India has issued an order against Birla Sun Life Asset Management Company, asking it to pay Rs 1.25 lakh for unveiling a product that it had not secured any permission from the market regulator.

In fact, Birla Sun Life released an entirely different product from the one it got permission for from SEBI. While SEBI had approved the launch of monthly Plan Series I and II and Quarterly Plan Series I and II, but the AMC launched Monthly Plan Series III, thereby incurring SEBI's wrath.

However, the AMC has paid the amount without really having accepted or denied any guilt over the matter.