We don't allow promoter to extend their leverage, says Nilesh Shah

In the case of Essel group, the burning question before lenders was whether the pledged shares should be invoked and sold to recover dues, says Shah

Nilesh Shah, managing director of Kotak Mahindra Mutual Fund, has been in fire-fighting mode, explaining investors the rationale behind the move to not invoke the shares pledged by Essel group promoters. In an interview to Samie Modak & Jash Kriplani, Shah says the choices made are in the best interest of unitholders. Edited excerpts:

What’s the feedback by investors on your decision?  

Every single investor we have reached out to is on board. For those who are criticising us, I’d like to request them to show us a better alternative.   

One view is that fund houses had sufficient cover and should have