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Notes from meeting with Kotak AMC.

Kotak multicap MF is the largest scheme in terms of aum ie 29000 crores.

Highlights:

1. Mutual fund industry has asked time from Sebi to give their representation on the circular.

MF industry will either argue that circular is not in favour of unit holders or they may ask for extension of deadline.

2. MF industry will "not" buy small and mid cap stocks immediately and also not sell large caps because of circular announcement.

They will wait for their representation to sebi.

3. MF industry has all alternatives available if they believe size of scheme is detriment
Alternatives are merge schemes (Multicap with LargeMid category), change scheme category from multicap to flexicap, create new category of funds so that there is no compromise to investors.

4. Fund managers will not buy small and mid cap just because there is a circular.

If the AMC believes there is less value in mid and small caps then the AMC would consider alternatives mentioned above.

5. Kotak Standard multicap will continue to be managed with same size with minimal disruption

AMC will exercise any of the above said alternatives

Discussions with SEBI is still on going.