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Sebi may probe JM MF's G-sec dealings
May 08, 2003 21:50 IST
Securities and Exchange Board of India may soon launch a full-fledged investigation into the alleged violation of mutual funds regulations by JM Mutual Fund while dealing in government securities.
"Following Reserve Bank of India's communication on transactions involving JM Mutual Fund and two finance companies, we have sought preliminary data on G-sec trading from the fund", Sebi sources said in Mumbai on Thursday.
"The apex bank has sought a probe into transactions by these parties in highly illiquid government securities and based on the analysis we could go for regular investigations," they said.
Sources said JM MF officials have maintained that these transactions are legal and meet the investment norms.
RBI has pointed out that transactions pattern and activity levels of the two finance companies, which are not registered with the market regulator or the stock exchanges, do not appear to be conducted by an ordinary investor, sources added.
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