The industry body said it is grateful to the market watchdog for its open door policy for a dialogue and will gather feedback from members and revert for non-disruptive execution of multi-cap funds portfolio balancing.
On Sunday, Sebi said that mutual funds have many options to meet with the requirements pertaining to new asset allocation framework for multi-cap schemes.
Sebi clarified that apart from rebalancing their portfolio in the multi-cap schemes, mutual funds could facilitate switch to other schemes by unit holders, merge their multi-cap schemes with large-cap schemes or convert their multi-cap schemes to another scheme category, for instance, large cum mid-cap schemes.
The clarification came after the regulator on Friday, directed multi-cap funds to invest at least 25 per cent of their corpuses each in large-cap stocks, mid-caps and small-cap stocks.
This resulted in concerns among the mutual fund industry and fund managers estimated the move would result into see Rs 30,000-40,000 crore moving out of large-cap to mid-cap and small-cap companies.
At present, majority of the multi-cap funds have run with a large-cap bias and the new requirements.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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