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Market regulator SEBI raises disclosure norms; tightens rules for MFs

Liquid mutual fund schemes will have to hold at least 20 per cent in liquid assets like gilts

Ajay Tyagi, Sebi chairman

Ajay Tyagi, Sebi chairman

BS Web TeamAgencies New Delhi
India’s market regulator on Thursday raised disclosure norms for pledging of shares by promoters of companies and tightened rules for mutual funds in the country in an effort to protect minority shareholders and retail investors.

The Securities and Exchange Board of India (SEBI) also put a cap of 5% of net sales on royalty paid by companies to their parents or promoters and mandated companies to get shareholder approval for royalty payments above the cap, it said in a release after its board meeting, news agency Reuters reported.

The need for higher transparency on pledged shares come after recent fears of high
Topics : Sebi

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First Published: Jun 27 2019 | 4:54 PM IST

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