L&T Investment Management case dismissed by SEBI without sanctions

In spite of L&T Investment Management’s failure to keep sufficient records on investment decisions, the capital market regulator SEBI did not impose any fines and dismissed the case.

The inspection report provided to SEBI claimed that the AMC retains the data, facts, and opinions guiding the decision in case of first-time investment. However, in subsequent purchases and sales, the fund management does not record any specific justifications that include the data, facts, and opinions that prompted them to choose a certain security for sale.

However, SEBI pointed out in its ruling that neither the MF Regulations nor the Circular contain any deadlines dictating when research reports must be updated.

Additionally, L&T Investment Management asserted that the investee companies’ equities were being actively monitored. Because the research report was not updated, SEBI claimed that the claim of negligence was unfounded. In light of this, SEBI declared that the adjudication proceedings against L&T Investment Management have been concluded without consequence.