Sebi issues fresh notices to HDFC MF and Kotak MF on Essel exposure

Regulator has initiated adjudication proceedings against fund houses, senior officials

The Securities and Exchange Board of India (Sebi) has sent two more show cause notices to HDFC Mutual Fund (MF) and Kotak MF, initiating adjudication proceedings against the fund houses in a matter pertaining to investments in Essel Group firms.

Both fund houses had come under the spotlight in April as they were not able to make full repayment to their fixed maturity plan (FMP) investors. 

While HDFC MF, as a listed entity, informed about the development on exchanges, an email query sent to Kotak MF didn’t elicit any response at the time of going to press. Calls to Kotak MF Managing