Breach of cross-holding norms: Fairfax seeks consent settlement with Sebi

Canadian billionaire Prem Watsa's firm holds over 10% stake in two AMCs

Canadian billionaire Prem Watsa-owned Fairfax Financial Holdings (FFHL) is looking to settle the alleged breach of mutual fund (MF) cross-holding norms with markets regulator Securities and Exchange Board of India (Sebi) via the consent route.

The consent mechanism allows an alleged wrongdoer to settle a pending matter with Sebi without admitting to or denying the guilt by paying a penalty or undergoing a market ban or both. 

This route helps save both time and money that a lengthy litigation process might otherwise entail.

“FFHL had filed a settlement application dated June 3, 2022, with Sebi under the Sebi (Settlement Proceedings)