Nippon Life India AMC Fined for TER Violations

9 Aug 2024 , 10:15 AM

The Securities and Exchange Board of India (Sebi) levied a ₹3 lakh penalty on Nippon Life India Asset Management Company (AMC) and its trustee for violating total expense ratio requirements.

The regulator discovered, during an examination, that the asset manager was charging the total expense ratio (TER) of several schemes to the asset management company’s accounts. The regulator then issued a show-cause notice to the investment house on March 22.

The Sebi found that in five exchange traded funds (ETFs), the fund house charged the schemes less expense than the schemes actually incurred.

It claimed that by covering the scheme’s excess expenses, Nippon Life AMC violated its guidelines.

The fund house said that there was no express and unequivocal prohibition on the AMC absorbing scheme-related charges.

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