Capital market regulator SEBI has levied a penalty of ₹3 lakh on Nippon Life India Asset Management Company and its trustee for non compliance of regulations on total expense ratio.

During examination it was observed from the TER structure that five ETFs of Nippon India AMC had charged less expense to the schemes against actual expense incurred by the schemes. The fund house was bearing excess expenses of the scheme and violated SEBI regulation.

A show-cause notice was served in March and a replay was received in April.

Though no specific disproportion of gains by Nippon Life India AMC or specific loss suffered by the investors, the AMC is bound to comply with SEBI circulars and regulations mandatorily, irrespective of the fact whether such non compliances result in causing any actual loss to any investor or not, said SEBI order.

Any deviation from complying with the rules or any action deviant from the manner prescribed under such rules and regulations, would be a sufficient ground for inviting penal action, said the SEBI order levying a penalty of ₹2 lakh on the AMC and ₹1 lakh on Nippon Life India Trustee.

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