June 02, 1997
PR No. 60/1997

ADJUDICATION ORDER AGAINST MORGAN STANLEY ASSET 
MANAGEMENT INDIA PRIVATE LIMITED
IIMARP DEPARTMENT

Based on the findings of the inspection carried out by independent auditors into the affairs of the morgan stanley mutual fund and on the basis of the annual report of the fund for the year 1995-96, SEBI had appointed an adjudicating officer against morgan stanley asset management india private limited ( morgan stanley mutual fund) to look into certain violations alleged to have been committed by the asset management company.
 
These violations were of the investment norms prescribed by SEBI in the mutual fund regulations - undertaking activity akin to an amc for clients other than the morgan stanley mutual fund without the prior approval of SEBI; Exceeding the five percent investment ceiling norm; Failure to deliver securities sold in the market.
 
Accordingly, the adjudicating officer has after considering the replies, other submissions made by the fund and personal hearing has come to the conclusion that violations did take place and hence levied a penalty of rs. 2,00,000/- on the morgan stanley asset management india private limited.