Markets regulator SEBI has barred Kotak Mahindra Asset Management Company (AMC) from launching any new Fixed Maturity Plan (FMP) for six months. According to the order issued on August 27, SEBI has also imposed a fine of 50 lakhs on it. Kotak Mahindra AMC will have to deposit this fine within the next 45 days.
SEBI is probing Kotak Mahindra AMC
SEBI is currently examining the six fixed maturity plans of Kotak Mahindra AMC. Kotak was supposed to pay the investors of these plans in April 2019 itself, but it delayed it. Actually, the fund house did not have enough money to return their returns to the investors after the scheme maturity. AMC said that it had invested in Essel Group companies, which have defaulted in payments. Because of this she could not return her money to the investors.
NSE warns investors, know why stock exchange had to issue advisory
Kotak AMC did not return money to investors on time, gave wrong information
Kotak Mahindra AMC was supposed to return the investors’ money in April 2019 itself but the company delayed the money by five months. Eventually the investors’ money was returned in September 2019. SEBI, in its investigation, has found that the company has also erred in due diligence. He also did not give correct information to the investors. More discrepancies are coming to the fore in the investigation. In view of these, SEBI has banned AMCs from launching any fixed maturity plan for the next six months.