Mumbai: The capital markets regulator has initiated an inspection of the fixed income schemes of Invesco Asset Management (India) following a complaint by a whistle-blower, two people familiar with the development. Invesco said its business and portfolios remain ‘unaffected’.
The whistle-blower is a former fund manager of Invesco who complained to the Securities and Exchange Board of India (Sebi) about the mismanagement of schemes at the fund house.
“Sebi received a complaint a few months ago and has started inspection of the debt schemes based on the allegations made by the whistle-blower. Once the inspection report comes in, the next course of action will be taken,” said the first of the two persons cited above.
“It’s a sensitive matter and the Sebi chairperson is handling it directly,” said another person familiar with the development.
The exact nature of the violations could not be ascertained.
The whistle-blower has been associated with Invesco Asset Management for over eight years. He started his stint as a fixed income trader and went on to become a fund manager at the fund house.
He became a fund manager in July 2018. The time period under the Sebi scanner is not immediately clear.
The whistle-blower has flagged violations of the mutual fund regulations with Sebi and also filed a complaint with the US SEC (Securities Exchange Commission).
Emails sent to Sebi remained unanswered.
In response to ET’s mailed query, Invesco said: “As is appropriate for a global financial services company, Invesco maintains policies and procedures for investigating allegations of improper conduct received from any source. Invesco always handles such matters in an appropriate manner, consistent with global best practices. This includes global oversight and independent, impartial review.”
A suit has also been filed before the Bombay High Court against Invesco Asset Management India and Invesco Ltd. The whistle-blower has made senior officials of the fund house and Sebi parties to the suit.
The case is at the pre-admission stage and it has not been numbered yet, said a lawyer.
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