Taurus AMC settled a case of fraudulent trading with SEBI by paying Rs.1.95 crore as settlement charges. This refers to a Feb-2017 case when Taurus MF had to take a big hit on 4 of its schemes after paper manufacturer, Ballarpur Industries, defaulted on debt. The schemes lost 11% in a single day. The applicant was aware of the financial distress in BILT.

In addition, the Date and Time Stamping Machine (DTSM) was tampered to deliberately benefit a handful of investors which included some employees of Taurus MF. Interestingly, Taurus had made a redemption request for their own investment in one of their funds just before BILT defaulted on payments.

The Internal Committee of SEBI proposed revised settlement terms since the AMC had already compensated the unit-holders to the tune of Rs.9.63 lakhs. The settlement amount of Rs.1.95 crore would be paid by the applicant and not loaded on to unit holders.