SEBI Bars Kotak Mahindra AMC From Floating New FMP Schemes For 6 Months | Know Details
The current order found discrepancy wherein investors of certain FMP schemes launched by the Kotak Mahindra Mutual Fund were not paid their full proceeds based on the declared Net Asset Value (NAV).
New Delhi: In the latest ban, market regulator Securities and Exchange Board of India (SEBI) has prohibited Kotak Mahindra Asset Management Company from launching new fixed maturity plan (FMP) schemes for the next six months.
The move has come against delay in payment of full proceeds to investors of six FMP schemes run by the AMC, Mint reported.
Apart from this, the market watchdog also imposed a penalty of Rs 50 lakh on Kotak Mahindra AMC, which is to be paid within 45 days. Besides, SEBI has also directed the AMC to refund part of the investment management and advisory fees collected from unitholders of six FMP schemes, as per the report.
The current order found a discrepancy wherein investors of certain FMP schemes launched by the Kotak Mahindra Mutual Fund were not paid their full proceeds based on the declared Net Asset Value (NAV).
Earlier, in June, the regulator had banned Franklin Templeton Asset Management (India) from launching new debt schemes for two years. The regulator had said that Franklin Templeton Mutual Fund violated the provisions of the Mutual Funds Regulations and also certain SEBI circulars.
In its final order, SEBI said that the ban on the launch of new debt schemes, in the categories of the six schemes that were wound up by the mutual fund, will be applicable from the date that the mutual fund had ceased those schemes.
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