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Sebi tweaks investing norms for multi-cap funds

Capital Market 

Mandates minimum 25% investment in large-caps, mid-caps and small-caps each.

In a circular dated 11 September 2020, the Securities and Exchange Board of India (Sebi) issued guidelines regarding categorization and rationalization of mutual fund schemes.

Sebi said that in order to diversify the underlying investments of 'multi-cap funds', such funds must invest at least 25% of their portfolios in large, mid and small cap companies.

"The minimum investment in equity and equity related instruments will be divided in 75% of total assets. Minimum investment in equity and equity related instruments of large cap companies will be 25% of total assets, minimum investment in equity and equity related instruments of mid cap companies will be 25% of total assets and minimum investment in equity and equity related instruments of small cap companies will be 25% of total assets the market regulator said.

Sebi added that all the existing multi-cap funds shall ensure compliance with the above provisions within one month from the date of publishing the next list of stocks by Association of Mutual Funds in India (Amfi), i.e. January 2021.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, September 12 2020. 10:44 IST
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