Side Pocketing

The fund house also said that side-pocketing was done only after CRISIL downgraded the telecom company’s debt securities below investment grade.

Funds Gate | Fund houses avoid side-pocketing to protect their pockets ahead of unitholders’

Mutual funds had an opportunity to demonstrate that they put their unitholders interests ahead of theirs. Sadly, barring an exception they did not walk the talk

Analysis | Mutual funds avoid side-pocketing despite SEBI’s approval

A side-pocketing is a diligent and tedious exercise. It needs segregation of illiquid and good assets, and two segment NAVs in the scheme till it is resolved.

Essel woes: Kotak AMC may not fully repay investors in redeemed FMP

Kotak AMC did not specify how it will pay off its unitholders the money it would realise around its maturity (8 April; as per Value Research) and how it would segregate- and at what net asset value- the troubled debt securities.

Editor's Take | Sebi allows side-pocketing in mutual funds

Uttaresh Venkateshwaran gets in conversation with Moneycontrol's Kayezad Adajania to discuss side-pocketing in mutual funds.

Franklin Templeton India Crisis | Opinion | Mutual funds side-pocketing distressed assets is one step short of pickpocketing investors

Allowing mutual funds to segregate distressed debt securities in a scheme, a practice called side-pocketing is a clear moral hazard.