Kotak Mutual Fund pays pending balance amount to its FMP investors

Kotak Mutual had to withhold at the time of maturity, having entered into a 'standstill' agreement with Essel group promoters

Kotak Mutual Fund (MF) has paid the pending balance amount to its fixed maturity plan (FMP) investors, which it had to withhold at the time of maturity, having entered into a ‘standstill’ agreement with Essel group promoters to realise fair value of its investments in the group’s firms. In a note to investors, Kotak MF said: “In early Sept­ember, a portion of invest­ment was realised from the promoters’ stake sale to Invesco Oppenheimer Funds, which was paid to all unitholders. Further, the balance amount (principal + accrued interest) has been realised.” “The proceeds towards full redemption of your balance units have been transferred to your bank account,” the note added.