#Investor Protection

The Supreme Court ruled that regulatory compliance under SEBI (Mutual Funds) Regulations, 1996 is non-negotiable, even if investors benefit from breaches. Penalties for Kotak Mahindra AMC and Trustee were upheld for lack of due diligence, unauthorized maturity extensions, and inadequate disclosures, reinforcing fiduciary duty over investor outcomes.

Directors remain criminally liable under the SEBI Act for non-refund of investor funds even after the company's dissolution, as the offence is continuing in nature and not barred by limitation under CrPC Section 468. This ruling expands accountability beyond corporate shells, reinforcing investor protection in unregistered collective investment schemes.