Supreme Court upholds Sebi action against Kotak AMC, MD & other executives

Supreme Court upheld SEBI's action against Kotak Mahindra Asset Management Company (Kotak AMC), its trustee company, and senior executives including MD Nilesh Shah for violation of mutual fund rules.

The violations related to Kotak AMC's handling of six Fixed Maturity Plan (FMP) schemes.

The court rejected the defence that investors did not suffer financial losses, stating regulatory compliance is paramount regardless of investor gains.

Kotak AMC was directed to pay Rs 30 lakh and Kotak Trustee Company Rs 20 lakh to accredited charitable organisations.

The bench warned fund houses with the phrase 'Mandate first, gains later; Sebi compliance, never falter'.