The Securities and Exchange Board of India (Sebi) has banned Kotak Mahindra Asset Management Company from launching fastened maturity plan (FMP) schemes for six months.
The motion got here as Kotak AMC delayed fee of full proceeds to buyers of six FMP schemes run by the AMC. Sebi has additionally imposed a penalty of Rs 50 lakh on the mutual fund, which is to be paid inside 45 days.
It has additionally requested the AMC to refund a part of the funding administration and advisory charges collected from unitholders of six FMP schemes with 15 per cent curiosity every year, to be calculated from the date of FMP maturity to the date of precise fee.
The case pertains to 6 schemes that have been due for maturity in April-May 2019.
The fund home had didn’t make full redemptions on the time of maturities as a result of these schemes had invested in Essel group and different corporations, which had defaulted on their funds.
The fund home solely paid the buyers absolutely by September 2019. In brief, the FMPs that have been due for maturity in April-May, have been in reality absolutely redeemed solely in September of that yr. Ordinarily, this wouldn’t be an issue, besides that in doing so, the fund home violated numerous norms, Sebi stated.
These schemes had invested in zero-coupon non-convertible debentures issued by Konti Infrapower & Multiventures Pvt Ltd and Edison Utility Works Pvt Ltd — each the issuers belonged to the Essel group, which was the promoter of Zee Entertainment Enterprises Ltd.
