Mutual Fund Managers no more above the law; SEBON slaps fine against 4 big Merchant Bankers for investing more than 10% of fund in saving products of BFIs

SEBON has come heavily on the Mutual Funds who have been found flouting the provisions laid out in the Mutual Fund Management Bylaws 2067 which doesn’t allow the Mutual Funds to invest more than 10% of their total fund size in deposit products of BFIs. In this regard, CBIL Capital, NIC ASIA Capital, Laxmi Capital Market and NMB Capital have been found breaching the legal provision during the inspection of the market regulator which has imposed a fine to all 4 of the merchant bankers.

As per the media statement from the board, NIC ASIA Capital has been slapped with a fine of Rs 25 thousand whereas the remaining 3 merchant bankers have been penalized with a fine of Rs 35 thousand.