The notice alleged FT was running the inspected debt schemes like credit risk fund schemes, and had not disclosed to investors its strategy of investing in high-yield securities with low credit rating of AA and A. Sebi fined Vivek Rs 4 crore, Roopa Rs 3 crore, and banned them from the markets for one year. Many of these holdings are now being liquidated by the schemes at fair value under normal market conditions,” it said. Assets under credit risk funds plummeted by Rs 36,000 crore to Rs 25,656 crore from February 2020 to May 2021. “Some fund houses were using the same modus operandi that FT used in the six closed schemes.

Source: Indian Express June 14, 2021 21:33 UTC