SEBI tweaks norms for mutual fund investments in listed securities of sponsor.

Banking & Finance

Securities and Exchange Board of India (SEBI) has revised guidelines governing mutual fund investments in listed securities of their sponsors. The new norms aim to ensure transparency and prevent conflicts of interest. Mutual funds are now required to disclose all investments in sponsor group companies, adhere to stricter valuation norms, and seek board approval for such transactions. These changes are designed to enhance investor protection and market integrity.


      SEBI's circular limits mutual fund investments in sponsor group companies' listed securities to 25% of scheme assets.

      ETFs and index funds can invest up to 35% of scheme's net asset value in sponsor group companies.

     

 

     


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Chairman : Madhabi Puri Buch
Headquarter: Mumbai
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