Mumbai: Markets regulator SEBI on Monday said it is actively looking at re-categorisation of mid cap and small cap mutual fund schemes.
The move is expected to permit these products to invest in a wider set of stocks, according to industry experts.
In order to ensure uniformity in respect of the investment universe for equity schemes, the regulator, in 2017, had defined large cap, mid cap and small cap.
Top 100 companies in terms of market capitalisation come under the large cap segment, while the 101st to 250th firms falls under mid cap and 251st company onwards come under small cap.
"We are actively looking at re-categorisation of mutual funds and will come out with guidelines," SEBI Chief Ajay Tyagi told reporters here after the board meeting.
It is expected that the regulator would ease framework to include more stocks under the small- and mid-cap category, experts added.
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The SEBI's board approved a proposal to amend mutual fund regulations that will allow bank and non-bank custodians to offer custodian services for gold or gold related instruments such as gold ETFs.
The move is aimed at reducing concentration of custodial services for gold or related instruments, SEBI said.
In order to bring uniformity, the board has also decided to allow sponsor or asset management company (AMC) to invest in close-ended mutual fund schemes.
Additionally, SEBI's board has approved amendment to depositories and participants regulations, wherein the word pledge will include re-pledging of securities for margin or settlement obligations of the client.
Further, the Securities and Exchange Board of India (SEBI) budget for 2020-21 has been approved in the meeting.
SEBI to come out with circular to prevent Karvy-like incidents
SEBI Chief Ajay Tyagi said it will soon come out with a circular to prevent incidents like Karvy Broking Services Ltd (KSBL), which had allegedly misused clients's securities.
Speaking to reporters after SEBI board meeting here, Tyagi said also said KSBL has told the National Stock Exchange that it would pay fund shortfall of Rs 678 crore by March by selling stake in a company.
SEBI to relax investment manager eligibility norms for InvITs; fast-track issuance
SEBI also decided to amend its investment manager eligibility norms for Infrastructure Investment Trusts and also permit fast-track issuance of units to existing investors in REITs and InvITs.
The changes in the eligibility norms, approved by SEBI's board at a meeting here, will help a mega offering worth an estimated Rs 20,000 crore by the National Highways Authority of India (NHAI), which is in the process of setting up an Infrastructure Investment Trust (InvIT) to monetise its completed public-funded national highways.
The board approved a proposal to revise eligibility conditions for investment managers in InvITs and for streamlining the process of rights issue of REITs and InvITs, the regulator said after the meeting.
SEBI to tighten eligibility norms for investment advisers, fees to be capped
With an aim to safeguard investors' interest, markets regulator SEBI decided to tighten its eligibility norms for investment advisers and decided to introduce an upper limit for their fees.
SEBI also barred use of titles like independent "financial advisers" or "wealth advisers" by those dealing in distribution of securities, unless they are registered as investment advisers also.
Announcing a slew of amendments to its regulations for investment advisers, approved by SEBI's board here, the regulator said an individual adviser cannot provide distribution services, while firms would need to segregate advisory and distribution activities at the client level.
(Inputs from PTI)
