 "News Digest")
IL&FS effect: Sebi may review existing regulatory norms for liquid schemes
The liquidity squeeze triggered by the Infrastructure Leasing & Financial Services (IL&FS) default has prompted the Securities and Exchange Board of India (Sebi) to review the existing regulatory framework for liquid schemes.
The market regulator is considering new measures that will help these schemes manage liquidity and risks better, said industry sources. Among the suggested changes, Sebi could reduce the single-investor limit in liquid schemes, restrict the flow of “hot” money in such schemes, and direct such schemes to have larger liquidity buffers in tough markets. Read more
