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In whose best interests did mutual funds act - investor or borrower?

Updated : May 15, 2019 03:00 PM IST

According to SEBI guidelines, an FMP must invest in instruments that mature before the FMP itself matures. The extension of the Essel group loans to September 2019 meant that the instrument would be alive till then, beyond the FMPs’ tenures that matured in April-May 2019. That is a clear violation of SEBI law.
In a note dated April 15, HDFC MF said all the unitholders who did not opt for rollover shall be allowed to redeem their units at prevailing net asset values (NAV).
The next line of the same statement reads “the unitholders will receive the maturity proceeds on the due date of maturity of the FMPs excluding the value of debt exposures to ZEEL group.
In whose best interests did mutual funds act - investor or borrower?
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