InvestorQ : Why Kotak MF is deferring fixed maturity plan payments?
Purvesh made post

Why Kotak MF is deferring fixed maturity plan payments?

Anjali Desai answered.
4 years ago

There are 6 Kotak Mutual Fund (MF) plans that will mature from April to May end 2019. However, Kotak MF might not repay to their investors because Kotak AMC itself is facing a delay to recover money that was lent to Edisons Utility Works Pvt Ltd and Konti Infrapower & Multiventures Pvt Ltd which are part of Essel Group companies. Essel group is a conglomerate company that includes listed companies like Zee and unlisted companies like Edisons.

On Wednesday 10 April 2019, Kotak AMC notified to their and said that they will get maturity amount minus the value of holding in Essel Group. Kotak further said that their Investor will receive rest balance as soon the fund house will recover their money from Essel Group. In a statement, Kotak Mutual Fund said “Essel promoters are working for a resolution through a strategic sale of Zee in a time-bound manner,”