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Sebi wants MFs to invest only in listed securities

Last Updated 08 August 2019, 19:58 IST

With an ambition to safeguard mutual fund investors from high-risk assets, Securities and Exchange Board of India (Sebi) wants fund houses to shift all their investments to listed or to-be-listed equity and debt securities in a phased manner and reduce their exposure to unrated debt instruments from 25% to only 5%.

Exposure to risky debt securities has emerged as a major risk for the capital market investors, including those coming through the mutual fund space, and the regulator has been making efforts to enhance its regulatory safety net against such risks.

Taking forward certain decisions approved by Sebi’s board earlier in June, the regulator has now finalised the draft amendments to the prudential norms for mutual fund schemes for investment in debt and money market instruments.

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(Published 08 August 2019, 19:32 IST)

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