New investment norms for mutual funds and additional guidelines for credit rating agencies and debenture trustees are on cards.
The move, indicated by U.K. Sinha, chairman of the Securities and Exchange Board of India (Sebi) on Tuesday, aims to prevent crises such as the recent one in two fixed income schemes under JP Morgan AMC Ltd.
“We may revise the investment norms for mutual funds to ensure that there is no excessive concentration risk taken by any mutual fund in a single company or a single sector at any given time,” Sinha said on the sidelines of the annual capital market summit organized by industry body Federation of Indian Chambers of Commerce and Industry (Ficci).
