Mutual funds are secure investment vehicles as investors get to bank on stocks from different sectors in the same portfolio. Assets under management by mutual funds have gone up by more than Rs 30 lakh crore in the past 10 years.
In a push to keep mutual funds better capitalised, the Securities and Exchange Board of India (SEBI) has given its nod to private equity funds sponsoring MFs.
What are the conditions?
Any firm which owns a 40 per cent share in mutual funds, has to comply with eligibility norms, including capitalisation of Asset Management Companies, till they have Rs 150 crore in liquid net worth.
SEBI's decision follows the takeover of IDFC mutual fund by Bandhan Financial Holdings, GIC Sovereign Wealth Fund, and ChrysCapital.
More on the cards
Apart from this, corporate governance reforms have also been announced by the market regulator, to stop individuals from sitting on boards of listed firms permanently.
Without naming Adani, the SEBI chief said that the regulator won't comment on individual firms, since the matter is in the Supreme Court.
She added that they will follow SC's advise as they are obligated by duty to do so.
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