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Sebi issues notices to Kotak MF, HDFC MF over exposure to Essel

Essel Group promoters have sought time to repay their lenders.

Jash Kriplani & PTI  |  Mumbai 

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The Securities and Exchange Board of India (Sebi) has sent show-cause notices to Kotak Mut­ual Fund and HDFC Mutual Fund, seeking details about their in the debt instruments of Group companies. Group promoters have sought time to repay their lenders.

Both fund houses had exposure to Group companies in their fixed maturity plans (FMPs). Both had come under the spotlight last month as they were not able to make full repayment to their FMP investors on account of these investme­nts.

While HDFC MF, as a listed entity confirmed the development on exchanges, an e-mail query sent to didn’t elicit any response.

stated: “We wish to inform that the company is in receipt of two show-cause notices from dated May 10, 2019, in relation to the of the FMPs of in debt instruments of companies."

Most MFs with debt exposures to had entered into a standstill agreement with the promoters, which effectively extended the maturity of these debt papers to September.

As of March 31, 2019, 16 FMPs belonging to and were maturing before the extended timeline given to the promoters, Value Research data showed.

First Published: Tue, May 14 2019. 02:39 IST