SID Related Disclosures

Penalties and Pending Litigation or Proceedings

Particulars Penalty
Penalties and action(s) taken against foreign Sponsor(s) during the last five years in the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. None
Monetary penalties imposed and / or action taken against Indian Sponsor(s) during the last five years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to shareholders or debenture holders and depositors, or for economic offences, or for violation of securities law including details of settlement, if any, arrived at with the aforesaid authorities during the last three years.

Details Pertaining to Bank of India:

A. During the FY 2019-20:

  • The Reserve Bank of India (RBI) has, by an order dated July 31, 2019, imposed monetary penalty on bank for non-compliance with certain provisions of directions issued by RBI on "Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016".

 

B. During the FY 2020-21:

 

  • RBI imposed a penalty of Rs. 5 Crs for Non-compliance of the following Directions issued by RBI:-
    1. Non-compliance with the direction issued by the RBI on ‘Income recognition and Asset classification (IRAC) norms.
    2. Opening of current account by the Banks –Need for Discipline.
    3. Frauds classification and reporting

The payment of penalty has been done on June 2, 2020.

 

  • Monetary Authority of Singapore (MAS) imposed Monetary penalty of SGD 1000 (equivalent to INR 53,545) for violation of social distancing measures in branch (failure to take body temperature and distancing of at least one meter between two staff. Payment of penalty made on June 25, 2020.
  • Uganda Revenue Authority Regulator has informed Monitory penalty of USD 586.00 (equivalent to INR 44,000) for the year 2014-15 for Delay in filing Excise Return. Payment of penalty has been made on June 26, 2020

C. During the FY 2021-22:

 

  • The Reserve Bank of India (RBI) has imposed, by an order dated June 07, 2021, a monetary penalty of 4.00 crore (Rupees Four crore only) on Bank of India (the bank) for non-compliance with certain provisions of directions issued by RBI contained in the "Master Circular on KYC norms/AML standards/ CFT / Obligation of banks under PMLA, 2002" dated July 1, 2014, circular on "The Depositor Education and Awareness Fund Scheme, 2014 - Section 26A of Banking Regulation Act, 1949 - Operational Guidelines" dated May 27, 2014, "Master Circular on Frauds - Classification and Reporting" dated July 02, 2012 and circular on "Sale of Financial Assets of Doubtful Standard / Fraudulent Origin to Securitization Company (SC) / Reconstruction Company (RC) - Reporting Requirements" dated April 5, 2011. Payment of above penalty has been made on June 10, 2021.
  • Foreign Regulator has imposed monetary penalty of Rs. 16.54 Crs to one of Foreign centre (Overseas Branch) for contraventions on Prevention of Money Laundering and Countering the Financing of Terrorism. Payment of above penalty has been made on March 14, 2022.
  • Regulator Ortoritas Jasa Keuangan (OJK) has imposed the monetary penalty on PTBOI for cooperation with two Insurance Companies to carry out bancassurance activities without prior approval of regulator since FY 2016 and a penalty of IDR 500,000,000.00 (equivalent to INR 25.00 lakhs, @1.00 million per year). Payment of above penalty has been made on January 21, 2022.

D. During the FY 2022-23:

 

  • RBI has imposed a monetary penalty of Rs. 70 Lakh (Rupees Seventy Lakh only) w.r.t. Non-compliance with certain provisions of the 'Reserve Bank of India - (Know Your Customer (KYC)) Direction, 2016' on the bank, based on their observations regarding deficiencies in regulatory compliance in domestic operations. Payment of above penalty has been made on July 12, 2022.
  • On 27.9.2022 NSE had levied a penalty of Rs.0.10 lacs for non compliance of Regulation 60(2) of SEBI, LODR – Bank has given less than 7 working day intimation in respect of interest payment of bonds due on 01.04.2022. We have submitted our request for waiver of the penalty to NSE. NSE vide their letter dated 01.03.2023 has advised waiver of fine. Hence, Penalty / fine may be treated as NIL.

E. During the FY 2023-24:

 

  • RBI has imposed a monetary penalty of Rs. 140.76 Lakh on 13.03.2024 under Sections 35, 35A, 46, 47A and 51(1) of Banking Regulation Act, 1949 and sections 11, 23(a) & 25(ixiii) of the Credit information Companies (Regulation) Act, 2005- Statutory inspection of the bank with reference to financial position as on March 31, 2021 & March 31, 2022- in respect of Show Cause Notice dated October 04, 2023.
  • Foreign regulator State Bank of Vietnam (SBV) has imposed a monetary penalty of Rs. 2.71 Crore on BOI HCMC for violation that BOI HCMC has not collected and checked the License of the State Bank Vietnam confirming the opening and use of Hai Duong Company's foreign currency account abroad, to ensure that the transfer of money to the foreign currency account abroad of the organization is in compliance with the License.
  • Foreign regulator Tax Department of Vietnam (SBV) has imposed a monetary penalty of Rs. 0.68 Crore on BOI HCMC for Administrative violation in declaration of Foreign Contractor Tax (FCT).
  • Foreign regulator Otoritas Jasa Keuangan (OJK) has imposed a monetary penalty of Rs. 0.45 Crore on PT BOI Indonesia Tbk for Error in 170 fields of reporting and requesting debtor information through Financial Information Service System (SLIK).
  • Foreign regulator Otoritas Jasa Keuangan (OJK) has imposed a monetary penalty of Rs. 2.86 Crore on PT BOI Indonesia Tbk for Administrative sanction in the form of penalty for late submission of semi Annual report (unaudited) as of 30.06.2023.

Details Pertaining to Bank of India Mutual Fund:

 

There was a shortage in pay-in of security of Face Value 1.00 Crore in respect of 29/06/2023 Maturing 364 DTB (IN002022Z135) which was transferred to CCIL for Settlement on Apr 10, 2023; as there was inadequate balance in our SGL A/c, RBI vide their letter MRO.PDO.TBS.No.S105/08.03.000/2023-2024 had imposed a penalty of Rs. 10,000/- for the above shortage, in terms of RBI Circular IDMD.DOD.17/11.01.01(B)2010-11 dated July 14, 2010. Payment for the above Penalty was done on Apr 11, 2023.

Details of violations and enforcement actions taken by SEBI in the last five years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/ adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. A show cause notice dated May 02, 2022 was received by Noticees namely AMC and others on May 05, 2022 on certain aspects covered in SEBI thematic audit for the period August 01, 2018 to February 28, 2019. The Company as a Noticee to the Show Cause Notice had filed a Settlement Application with appropriate authority in SEBI without admitting to any allegations and only in order to put quietus to the matter in accordance with law. SEBI accepted the Settlement Application and the Company has settled the matter with SEBI by remittance of Rs. 1,36,50,000/- as Settlement Fees to SEBI. With issuance of SEBI Settlement Order dated December 28, 2022, the matter now stands closed.
Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party. None
Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company requiring disclosure here by SEBI or which have been notified by any other regulatory agency. None
 
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