Baseless and defamatory allegations circulating on social media, says Motilal Oswal AMC

Kalyan Jewellers

Motilal Oswal Asset Management Company, which has been in the news recently following allegations of wrongdoings in the stock of Kalyan Jewellers, has categorically denied all the charges, saying the accusations on social media are “baseless, malicious, and defamatory” and a “deliberate attempt” to malign the reputation of the fund house.

“We categorically deny the baseless, malicious, and defamatory allegations circulating on social media against MOAMC and its officials,” stated a release issued by the fund house on Sunday.

“These baseless accusations are a deliberate attempt by individuals with vested interests to malign the good reputation that our firm and leadership have built over decades. Such baseless attacks on our integrity are completely unacceptable to us. Motilal Oswal Financial Services (MOFSL) has a legacy of nearly four decades of working with ethical practices and transparency,” it added.

The recent past saw many on social media, alleging that fund managers of Motilal Oswal AMC were involved in certain wrong doings in the shares of Kalyan Jewellers and that the fund house sacked a couple of fund managers.

"The allegations made against the firm and its officials about rumours related to resignation, unethical practice or search are totally false and a blatant attempt to mislead the public and damage the trust we have earned over decades of exemplary service," stated the release.

Incidentally, the shares of Kalyan Jewellers India also saw a huge fall in the recent past, with the shares plunging over 36 percent in just 11 trading sessions. The shares, which touched a high of Rs 794.60 on January 2, closed at Rs 501.65 on Friday.

Meanwhile, the fund house further said that its ethical principles are integral to every action and decision it takes and the fund house has "incomparable skin in the game".

"Our firm operates on ethical principles that are integral to every decision and action we undertake. These principles are deeply ingrained in our culture, ensuring absolute transparency and trustworthiness in all our dealings," stated the release.

"MOFSL demonstrates the highest level of commitment to its investors by maintaining incomparable "skin in the game." This reflects our deep alignment with our clients and investors’ financial goals and dedication to their success," it added.

We have a good track record of corporate governance and compliance and no instance of violations have been reported as per the allegations made in the social media, the release added.

In terms of due diligence, the fund house stated that its team "meticulously researches and conducts due diligence on every investment decision".

This ensures that our investments are sound, well-researched, and aligned with robust risk management frameworks, it said.

"We adhere to all regulatory requirements with utmost rigour and precision. Our operations are regularly audited, and we continuously enhance our compliance measures to ensure the highest standards of governance and accountability. The integrity of our teams is of highest standards and we assure investors that we never have, and we never will tolerate any slip up on this count," said the release.