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Sebi asks mutual funds to disclose details of promoter funding

Regulator concerned with low cover taken on such structures and gaps in risk-management

mutual funds

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Jash Kriplani Mumbai
The Securities and Exchange Board of India (Sebi) has asked mutual fund (MF) houses to share details of all the exposures where promoters have got funding by placing their shares as collateral or through other complex structures, latest by March 31.

In an e-mail sent to MFs, the regulator has asked MFs to disclose the details so that it can assess how large is the quantum of such exposures held by MFs to these structures, which have come under pressure due to sharp erosion in value of the promoter shares.

Sources suggest that Sebi is concerned with the low cover

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First Published: Mar 29 2019 | 1:51 PM IST

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