Explainer: Why SC said compliance more important than investor profit

The Supreme Court upheld SEBI's penalties on Kotak Mahindra Asset Management Company (Kotak AMC), its Trustees, and key executives over the restructuring of six Fixed Maturity Plans (FMPs).

The Court ruled that compliance with market regulations takes absolute precedence over investor profit or investment outcomes.

The ruling reinforces SEBI's authority to enforce strict adherence to market integrity rules, even if investors did not suffer losses.