Better safe than sorry

Sebi's decisions will help protect mutual fund unitholders

Investor protection was a key discussion point for the Securities and Exchange Board of India (Sebi) at its board meeting on Thursday. This is evident from the slew of changes that the regulator announced in mutual fund regulations in the wake of the liquidity crisis, which has affected several schemes. In the case of Infrastructure Leasing & Financial Services and Dewan Housing Finance Corporation, the downgrades in the ratings of their debt resulted in fund houses not finding an exit without a sizeable loss. Several fund houses entered into standstill agreements with promoters of Essel group and Anil Ambani group.