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The AMC should take approval of its minority shareholders for this charitable action. If the majority of minority shareholders approve, then there should be no objection to this transaction.
The AMC has a net worth of about Rs 3,000 crore and Rs 500 cr. is therefore significant exposure. Plus once they do this, there will be demands for future bailouts too. Lawsuits even. It’s a Pandora’s box really...
Mutual fund investments are subject to risk to be borne by fund investors. Every fund prospectus says this. The AMC is a listed company with its own shareholders so their approval for this, and future similar transactions is very much desirable even if it’s not legally required.
No exposure to AMC or any of the FMPs
