Mumbai: The Securities and Exchange Board of India (Sebi) has issued a show cause notice to the local unit of Invesco, a US asset manager, for possible violations by mutual funds that may have put investor money at risk, people familiar with the development told ET. Invesco reportedly mixed securities between schemes in an alleged breach of rules.
However, the company is said to have defended its actions before the capital markets regulator, arguing that investors did not lose money due to its actions, as it shifted loss bonds from a potential non-bank lender onto its own balance sheet. prevent erosion in investor wealth.
Sebi’s notice, reportedly served a few months ago, alleges a lack of separation between the mutual fund and portfolio management services, questionable inter-scheme transfer of securities jeopardizing investor interests, and the transfer of certain securities to foreign funds ahead of potential downturns, two sources familiar with the matter said. about the development said.
Invesco responded to the regulator’s notice last month, said one of the people cited above.
Emails sent to Invesco Asset Management India and Sebi remained unanswered till the publication of this report.
Sebi’s probe follows complaints lodged by Abhishek Bandiwdekar, a former fund manager at Invesco, who raised concerns about the mismanagement of schemes within the fund house. Bandiwdekar, associated with Invesco for over eight years, acted as a whistleblower, triggering Sebi’s probe into alleged violations of securities laws by Invesco Asset Management India which manages assets worth over ₹57,000 crore in the country.
‘Questionable’ Offers
The regulator also made allegations of collusion and alleged that key staff, including the chief executive of the local unit Saurabh Nanavati and fund managers, such as director and head of fixed income Sujoy Das, were involved in decisions that disadvantaged investors of one. fund to accept a request from a corporate client. In December 2020, Das moved out of Invesco Asset Management India after a 10-year stint.