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New Delhi: Sebi chief Ajay Tyagi on Tuesday mentioned the markets regulator will not be forcing anyone to invest in small-caps and funding ought to all the time be in the curiosity of traders amid new portfolio allocation guidelines for multi-cap mutual fund schemes.
He additional mentioned multi-cap mutual fund schemes needs to be “true to label”.
The regulator, earlier this month, directed multi-cap funds to invest at the least 25 per cent of their corpuses every in large-cap shares, mid-caps and small-cap shares.
This raised issues among the many mutual fund business and fund managers estimated that the transfer would end result into ₹30,000-40,000 crore shifting out of large-cap to mid-cap and small-cap corporations.
Earlier, there was no restriction on the publicity such funds wanted to make in massive, mid and small-cap shares and due to this fact majority of the multi-cap funds have run with a large-cap bias.
“Multi-cap form should be as per their name. We are not forcing anyone to invest in these caps (small-cap, mid-cap) and investment should be in the interest of investors,” Tyagi mentioned whereas addressing business physique Amfi’s 25th annual basic assembly.
According to him, improper categorization of mutual fund schemes will lead to confusion and mis-selling.
“Schemes not true to label will create confusion in the minds of investors,” Tyagi mentioned.
He additional mentioned Sebi has obtained representations from the Association of Mutual Funds in India (Amfi) on the multi-cap schemes and the regulator will take a name on the recommendations given by the business physique.
Tyagi mentioned debt mutual funds should bear in mind that there’s a distinction between investing and lending.
Mutual funds are usually not banks and mustn’t try to behave like one, they usually should defend the curiosity of unit holders, he added.
“Debt mutual funds are not banks and should not behave like one,” Tyagi mentioned.
With regard to market, Tyagi mentioned uncertainty in markets proceed to prevail though steps by RBI and Sebi have helped scale back the volatility.
This story has been revealed from a wire company feed with out modifications to the textual content. Only the headline has been modified.
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