Sebi on Friday imposed a penalty of Rs 50 lakh on Kotak Mahindra Asset Management Company (AMC) and barred the fund house from launching new constant maturity plan schemes for 6 months for violating regulatory norms.
The markets regulator additionally directed the fund house to refund part of the investment management and advisory charges accrued from the unitholders of the six FMP (Fixed Maturity Plan) schemes alongside a simple interest at the rate of 15 per cent per annum.
The case pertains to the fund residence’s funding in positive FMPs. These FMPs of Kotak AMC had invested in Zero Coupon Non-Convertible Debentures (ZCNCDs) issued with the aid of using Essel Group entities.