Birla Sun Life pays Rs 1.25 lakh to SEBI as settlement money

MUMBAI: Asset management firm Birla Sun Life paid Rs 1.25 lakh as settlement amount to the market regulator SEBI for launching a different financial product in place of those for which it had received approval from the regulator.

Birla Sun Life Asset Management Company Limited had sought approval from Securities and Exchange Board of India (SEBI) to launch Monthly Plan-Series I and II and Quarterly Plan Series-I, II and III and was approved by the regulator. However the company launched a different product, Monthly Plan Series-III, SEBI said today.

The order, passed today, said, "For the sole purpose of settling the matter on hand and without admission or denial of guilt on the part of the noticee to the finding of fact or conclusion of law, the noticee has remitted a sum of Rs 1,25,000 ...," SEBI said.

The regulator in the matter had issued show-cause notice to Birla Sun life in this case for violating the provisions of the rules set by SEBI.

Following the show-cause notice, the company proposed to pay Rs 1 lakh as settlement and Rs 25,000 as administrative expenses, which the company has eventually paid.