Sebi bans Kotak AMC from launching new FMP scheme for six months
The market regulator also imposed a penalty of Rs 50 lakh on Kotak Mahindra AMC, which is to be paid within 45 days
The Securities and Exchange Board of India (Sebi) on Friday banned Kotak Mahindra Asset Management Company (AMC) from launching new fixed maturity plan (FMP) schemes for six months. Further, the market regulator also imposed a penalty of Rs 50 lakh on Kotak Mahindra AMC, which is to be paid within 45 days.
The move comes against a delay in payment of proceeds to investors of six FMP schemes run by Kotak Mahindra AMC.
Sebi said it noticed that investors of certain FMP schemes launched by the Kotak Mahindra AMC were not paid their full proceeds based on the declared net asset value (NAV).
“The Noticee is directed to complete the exercise of payment of funds to the respective unitholders and submission of compliance report to the abovementioned authority within a period of 45 days from the date of this order,” Sebi said in its order.
Sebi has also asked Kotak AMC to refund a part of the investment management and advisory fees collected from unitholders of the schemes.
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