 "SEBI")
The Securities and Exchange Board of India’s (Sebi’s) new investing norms for debt mutual funds (MFs) may compel companies to move part of their short-term money from MFs to banks at lower interest rates, or invest in riskier assets.
For borrowers, rates are likely to increase by 50-100 basis points (bps).
“The borrowing corporates will find it more difficult to access other options of funds, and given Sebi’s restrictions, the cost of funds will move north,” said Prabal Banerjee, group finance director of Bajaj Group. Medium to long term funds will be more difficult to come by for borrowers, as
