Reliance's dream run in the market has equity mutual funds worried

Money managers can't buy more of India's most valuable company as actively-run plans aren't allowed to own more than 10% of a single stock

The scorching rally in Reliance Industries Ltd.’s shares is becoming a problem for India’s equity mutual funds.

The stock has more than doubled from a March low, thanks to Chairman Mukesh Ambani’s fundraising blitz. The run up has increased the company’s weighting in the S&P BSE Sensex to 17.4 per cent, from 11 per cent at the end of 2019.

Money managers have hit a regulatory wall because of the surge. They can’t buy more of India’s most valuable company as actively-run plans aren’t allowed to own more than 10 per cent of a single stock. This means funds can’t add rising