M&M Fin, Federal Bank: Top financial picks post Sebi's multicap fund rule

We believe quality Mid & Small caps can deliver significant returns in the next 4-6 months as most institutional investors will try to comply with this new regulation, said Centrum Broking

Mid- and small-cap banking stocks such as City Union Bank, Federal Bank, and RBL Bank zoomed around 12 per cent in the early morning deals on the BSE on Monday after market regulator Sebi asked multi-cap mutual funds to invest a minimum of 25 per cent each in Large, Mid and Small Cap stocks, and giving flexibility to the fund manager with the balance 25 per cent.

"In order to diversify the underlying investments of multicap funds across the large, mid and smallcap companies and be true to label, it has been decided to partially modify the scheme characteristics of