Business Standard

Sebi tightens norms for MFs, pledged shares to boost investor confidence

Market regulator says move aimed at restoring investor confidence

Ajay Tyagi, Chairman, SEBI

Ajay Tyagi, Chairman, SEBI | Photo: Kamlesh D Pednekar

Samie Modak Mumbai
The Securities and Exchange Board of India (Sebi) on Thursday introduced more checks and balances for debt mutual funds (MFs) to secure investors and stem systemic risks.

The regulator, among other things, has increased security cover for loans against shares, brought down sectoral investment limits, and mandated certain schemes to have a fifth of their exposure in government securities (g-sec).

Defaults or payment deferments by high-profile corporate groups including Zee and DHFL have plagued the Rs 25-trillion MF industry.

“We don’t think we are late. The measures we have taken will help revive the confidence of investors, especially those investing

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 27 2019 | 10:15 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to