SUBRAMANIAN R. VENKAT AND ANURADHA VENKATASUBRAMANIAN Vs. SECURITIES AND EXCHANGE BOARD OF INDIA AND ORS.

JUDGEMENT

(1.) WHETHER the changes made by Respondents 2 to 5 in the Mutual Fund scheme had changed the fundamental attributes thereof or modified the same affecting the interest of unitholders so as to attract the provisions of Regulation 18 (15A) of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 (hereinafter referred to as the Regulations) is the short question that arises for our consideration in this appeal. Facts giving rise to the appeal are these.

(2.) THE Appellants before us are husband and wife and they claim that they regularly invest in shares and mutual fund schemes through market intermediaries duly registered with the Securities and Exchange Board of India (the Board) and/or recognized by the stock exchanges. Respondent No. 2 is the Board of Trustees of HSBC Mutual Fund. Respondent No. 3 is the HSBC Mutual Fund set up in the year 2002 with HSBC Securities and Capital Markets (India) Private Limited as the sponsors of the mutual fund. Respondent No. 4 is a private limited company promoted by HSBC Limited and appointed by Respondent No. 3 to manage the mutual funds and operate the schemes of such funds in accordance with the provisions of the Regulations. Respondent No. 5 is the Chief Executive Officer of the fourth Respondent.

(3.) THE matter was investigated by the Board. While investigating the complaint the Board formulated the following issues for its consideration: