Regulator may ask asset management firms to go slow on thematic schemes

Some themes aggressively pursued by fund houses include environmental, social and governance (ESG), international funds, and other innovative ETFs in the equity, as well as debt segments

Domestic asset management companies (AMCs) have launched a slew of thematic funds in the last few months. Market participants said the liberal regulatory framework has allowed asset managers to launch multiple thematic schemes.

Some themes aggressively pursued by fund houses include environmental, social and governance (ESG), international funds, and other innovative exchange-traded funds (ETFs) in the equity, as well as debt segments.

AMCs have come out with a slew of new offers amid the boom in the equities market. Senior officials in the industry said the issue has come on Sebi’s radar and it can clamp down on multiple thematic scheme launches.

“Sebi