The fund house, the latest to have taken a massive valuation hit in its debt schemes, plans to propose possible measures to the regulator, in order to safeguard the interests of its existing unit holders.Taurus Mutual Fund, one of the smallest fund houses in the country, plans to approach the Securities and Exchange Board of India (Sebi) after one of its investments -- Ballarpur Industries (BILT) -- failed to honour the maturity obligation last week.

In a statement, Taurus said, "It is committed to initiating all steps in this regard to ensure that any recovery from BILT will be shared with the investors who have suffered erosion in the value of their investments."

Meanwhile, the fund house has temporarily suspended fresh subscriptions in the affected schemes so that any recovery of money that takes place will benefit only the affected investors.