A few DSP MF employees have resigned amid an ongoing probe on the possible internal code of conduct violation. These five to six individuals did not have access to investor money but were lending money to a former employee in their personal capacity. Such activities are considered as a violation of the internal code of conduct.
The news of employee resignation from a fund house is usually given an insider trading or fund misappropriation twist. However, official sources said that these DSP MF employees were not part of any investment activity that involved investors’ money. DSP MF is the 10th largest fund house in the country and oversees funds worth Rs 78,000 crore.
According to the version given by official sources to RupeeIQ, these individuals, on their own, engaged in lending activities with a former employee. Such practices are not encouraged in DSP MF and are considered as a violation of their code of conduct standards. Once the fund house found out about such dealings, it notified the employees and launched an investigation into the matter. Wary of this probe coming up with findings that could ruin their professional career, these employees have now resigned.
The company spokesperson sent this message on Whatsapp in response to our query:
BlackRock Inc., the world’s largest asset manager, some months ago sold its 40% stake in DSP BlackRock Investment Managers Pvt. Ltd to joint venture partner DSP Group.
DSP Mutual Fund was set up as a trust under the Indian Trust Act, 1882. The fund-house is led by Kalpen Parekh (President). The AMC directors include Aditi Kothari Desai, Dhananjay Mungale, Hemendra Kothari, S. Ramadorai, S.S. Mundra, and Uday Khanna.
The sponsors to the Fund are DSP ADIKO Holdings Pvt. Ltd and DSP HMK Holdings Pvt. Ltd.
DSP Investment Managers Pvt. Ltd. (formerly DSP BlackRock Investment Managers Pvt. Ltd) is the asset management company to the Fund. DSP Trustee Pvt. Ltd. acts as the trustee to the Fund. The DSP Group, headed by Hemendra Kothari, is one of the oldest and most respected financial services firms in India.