Kotak AMC moves SC over SAT ruling in Essel case

New Delhi: Kotak Mahindra Asset Management Co (Kotak AMC) on Monday moved the Supreme Court against a Securities Appellate Tribunal‘s March order that upheld the Securities and Exchange Board of India‘s key findings against it, its related entities including Kotak Mahindra Trustee Co, and certain officials in connection with investments made by six fixed maturity plans (FMPs) in Essel Group companies. The apex court will hear the case on Thursday.

Sebi had fined Kotak AMC, a wholly owned subsidiary of Kotak Mahindra Bank, and others for regulatory lapses and delayed payouts in certain fixed maturity plans. SAT upheld the Sebi’s order, but set aside the direction requiring Kotak AMC to disgorge a portion of the investment management and advisory fees collected from investors.

Kotak AMC has now challenged a part of the SAT’s order before the court. Denying any allegation of any ‘fraud,’ it said that they had disclosed their investment portfolio in public domain.