What is side-pocketing in MFs and how it works in investment portfolio?

Sebi has allowed mutual fund schemes the option of 'side-pocketing' which will help both fund houses and investors

The Securities and Exchange Board of India has allowed mutual fund schemes the option of ‘side-pocketing’. The move will help both fund houses and investors. Samie Modak & Jash Kriplani explain: 
What is side-pocketing?

Side-pocketing is a popular tool in the hedge fund and asset management industry. It is a term used for segregating bad or illiquid assets from the healthier or liquid ones. In layman’s terms, it is separating the bad apples from the good ones. Side-pocketing is in the news after the Sebi board on Wednesday formally allowed this option for debt schemes.

How will side-pocketing help?