 "sebi")
Curbs laid down by the Securities and Exchange Board of India (Sebi) on promoter funding can spell trouble for cash-strapped promoters who have availed funding from mutual fund (MF). The minimum security cover prescribed by the regulator for “loan against shares” and exposure limits could lead to near-term risks for MFs when existing loans come for refinancing.
“Some of the regulatory changes will make it difficult for promoters seeking funding against pledged shares to roll over their debt. The non-banking financial companies (NBFCs), which are an alternative avenue, are already constrained because of their own liquidity challenges,” said Akhil Mittal,
