Yesterday, the Securities and Exchange Board of India (SEBI) slapped penalties on seven entities of Rs 1.6 crore, including Kotak Mahindra Trustee Company and Managing Director of Kotak AMC Nilesh Shah.

Most of the entities named Kotak AMC’s fund managers Lakshmi Iyer, Deepak Agarwal, Abhishek Bisen, Compliance Officer Jolly Bhatt and Gaurang Shah, who was one of the members of the investment committee that approved the investment decisions related to certain Fixed Maturity Plan (FMP) schemes, as per the order. All these entities have to pay penalties within 45 days as per order.

Six FMP schemes matured in April and May 2019, which were held in debt securities issued by Edisons Utility Works Pvt Ltd and Konti Infrapower & Multiventures Pvt Ltd, belonging to the Essel Group. Zee Entertainment Enterprises Ltd (ZEEL) and its promoter Cyquator Media Services pledge equity shares.

Further, Kotak Mahindra Asset Management Company (AMC) had agreed with promoters and other promoter entities of Essel Group to extend the maturity of securities of various Essel Group entities to September 30, 2019. All six schemes were not paid the full amount on maturity based on the scheme’s Net Asset Value.