The Supreme Court has upheld SEBI’s action against Kotak Mahindra Asset Management Company (AMC) and its senior officials in the Essel Group debt investment case, affirming the market regulator’s authority to enforce mutual fund rules.
The court dismissed appeals filed by Kotak AMC, Managing Director Nilesh Shah and former CEO Harsha Upadhyaya against SEBI’s order. The regulator had found that the fund house entered into prohibited arrangements while investing in Essel Group debt securities in 2019.
The judgment reinforces transparency, fair treatment of investors and strict compliance with mutual fund regulations.