April 12 (Reuters) - India’s Kotak Mutual Fund said on Friday it was working with the promoters of Essel Group to ensure “optimal recovery” of dues owed by the conglomerate.
Kotak MF said its exposure to Essel Group remained in six fixed maturity plans (FMPs) and in Kotak Credit Risk Fund to an extent of 0.37 percent of its assets under management.
“While we regret that we had to withhold certain part of units in 6 FMPs viz. Series 127, 183, 187, 189, 193, 194, represented by portfolio investment in Essel Group companies for now, we believe that our actions are in the interest of our unitholders,” Kotak MF said in a statement to investors.
Investors have been worried about the safety of their investments in Kotak MF schemes after the company failed to repay some of its fixed maturity plans on time and rolled them over after prices of pledged shares of Zee Entertainment Enterprise Ltd crashed. (Reporting By Arnab Paul in Bengaluru; Editing by Subhranshu Sahu)