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

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 investments in the debt instruments of Essel Group companies. Essel Group promoters have sought time to repay their lenders.

Both fund houses had exposure to Essel 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 Kotak