The above fines have been levied for violation of mutual fund rules and not acting in the interest of investors. SEBI has said that Kotak AMC did not act in the interests of its investors when it entered into an agreement with the promoters of Essel Group to extend the maturity of the company’s debt securities in which Kotak AMC had invested in, to 30th September 2019. Due to this extension, investors were not paid the full Net Asset Value (NAV) that was due at the time of original maturity.
SEBI has also stated that for this extension agreement, the collateral taken was shares of Zee Entertainment. Given the value of these shares at that time, they amounted to 1.6 times the value of debt exposure. SEBI has said that this collateral amount was inadequate given the nature and credit risk of the debt exposure. SEBI has also stated that this transation was more in the nature of loan against shares rather than investment in debt securities by a mutual fund.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.