Navi AMC and Navi Trustee Pay ₹10.20 Lakh To Settle SEBI Proceedings over Expense-related Lapses

Moneylife Digital Team 03 December 2025

Investor Interest

Navi AMC Ltd and Navi Trustee Ltd have jointly settled a regulatory matter with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹10.20 lakh, closing proceedings that could have been initiated for alleged violations of mutual fund expense norms. The matter related to an alleged breach of Regulation 52(1) of the SEBI (Mutual Funds) Regulations, 1996, and SEBI’s Master Circular for Mutual Funds.

The companies had filed suo motu applications under the SEBI (Settlement Proceedings) Regulations, 2018, seeking to resolve the case without admitting or denying SEBI’s findings.

While the applicants maintained that all scheme-related expenses were strictly in line with the Association of Mutual Funds in India (AMFI) grey list, SEBI review found that the expenses exceeded the permissible limit of two basis points of the respective scheme’s assets under management (AUM) for FY24–25, making them non-compliant with regulatory requirements.

Navi AMC and Navi Trustee informed SEBI that they had taken corrective measures to address the issue. These included raising the total expense ratio (TER) of eight schemes, reviewing and reducing expenses borne by the schemes and revising minimum investment amounts. These steps were submitted as evidence of their intent to rectify the lapses.

SEBI’s internal committee(IC) held a meeting with the authorised representatives of the applicants on 23 July 2025 to discuss the details of the case and explore settlement options. Following this, on 29 July 2025, the applicants submitted revised terms, offering to pay ₹10.20 lakh jointly and severally.

The high-powered advisory committee (HPAC), in its meeting on 7 August 2025, reviewed and recommended acceptance of the proposed terms. SEBI panel of whole-time members (WTM) subsequently approved the recommendation on 3 October 2025, after which a notice of demand was issued on 13 October 2025.

Navi AMC and Navi Trustee remitted the settlement amount on 4 November 2025 and SEBI confirmed the receipt. With this, the regulator declared the potential enforcement proceedings against the applicants as settled.

However, SEBI clarified that the settlement order does not bar it from initiating action under Regulations 28 and 31 of the Settlement Regulations if any statements made during the settlement process are later found to be false, if any undertakings are breached, or if discrepancies in the settlement terms are discovered in the future.

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