Sebi on Friday banned Kotak AMC from launching new Fixed Maturity Plan (FMP) schemes for the next six months, the markets regulator said in an order issued on August 27. Sebi also imposed a penalty of Rs 50 lakh on the asset management company.
The order was passed after the markets regulator noticed the investors of certain FMPs launched by Kotak Mahindra Mutual Fund were not paid their full proceeds based on the declared Net Asset Value (NV) as on their respective maturity dates. The order will come into force with immediate effect, as per Sebi.
Kotak AMC has been directed to pay the penalty within forty-five days from the date of the order and must refund part of the investment management and advisory fees collection from the unitholders of the six FMP schemes.
